Mortgage Stress Test

Minimum Qualifying Rate (MQR)

Qualifying at a higher rate than you'll actually pay.

The mortgage stress test requires federally regulated lenders to qualify you not at your actual rate but at a minimum qualifying rate: the greater of your contract rate plus 2%, or 5.25%. It checks you could still afford the mortgage if rates rose. It is the main reason a pre-approval amount is often lower than expected. A recent easing exempts qualifying uninsured lender switches at renewal that do not increase the loan.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.