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The New Mortgage Stress Test

Toronto Realty Boutique
Publication date:
November 30, 2022
Article Summary: 

This blog post discusses the new mortgage stress test and what it means for those looking to purchase a new house or condo. The stress test was implemented by the Office of the Superintendent of Financial Institutions (OSFI) to assess risk and implement early interventions and corrective measures. There are three types of mortgages as it relates to default insurance: insured, insurable, and uninsured. The new proposed changes involve a new higher minimum qualifying guideline for uninsured mortgages, which will mean that anyone that fits within these parameters will be qualifying based on the higher of the contract rate plus 2% or a new benchmark rate of 5.25%. The article also discusses the measures that have been put in place over the last 10 years to minimize speculative activity and increase the barrier for entry into homeownership.


mortgage stress test, default insurance, uninsured mortgages, insurable mortgages, Department of Finance, homeownership, speculative activity, equity, market correction.

Source Citation: 
Toronto Realty Boutique
The New Mortgage Stress Test
November 30, 2022
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