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Mortgage Stress Test Changes

February 24, 2020

The Federal Government has announced that we will see changes to the stress test starting on April 6, 2020. Minister of Finance, Bill Morneau, announced changes to the benchmark rate used to determine the minimum qualifying rate for insured mortgages, also known as the “stress test.” These changes will come into effect on April 6, 2020. The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications, plus 2%.


“The government will continue to monitor the housing market and make changes as appropriate,” Morneau said in a press release. “Reviewing the stress test ensures it is responsive to market conditions.”


Morneau is adjusting the mortgage stress test as Canada’s housing markets have been seeing increased activity, with more buyers competing for real estate.


This will change the qualifying rate for new mortgages and could mean that some clients will qualify for a larger mortgage.