Mortgage Blog

Canada’s banking regulator is keeping its qualifying rate for uninsured mortgages unchanged, staving off calls from some quarters to relax the criteria amid a surge in interest rates this year.

The Office of the Superintendent of Financial Institutions (OSFI) announced on Thursday morning that it will maintain the current stress test, which requires borrowers to show that they can afford a rate of either 5.25% or two percentage points above their agreed contract rate – whichever is higher.

With interest rates having ticked steadily upwards throughout 2022, most borrowers are now having to qualify at a rate well above that 5.25% level, a development that led to some speculation that the stress test could be adjusted or relaxed.