The Mortgage Stress Test in 2026: What Rate Do You Qualify At?

The question: “What rate do I actually have to qualify at?” is a common Google search question about mortgages, and one my buyers ask at almost every first meeting.

Short answer: for an uninsured mortgage from a federally regulated lender, you must qualify at the greater of 5.25% or your contract rate plus 2% (OSFI). So if your offered rate is 4.50%, the lender tests whether you can afford payments at 6.50%.

A worked example

Take a $493,000 home, which was the Richmond Hill condo apartment benchmark in September 2026 (TRREB), bought with 20% down. The mortgage is $394,400 over 25 years.

• Payment at a 4.50% contract rate: about $2,183 a month.
• Payment at the 6.50% qualifying rate: about $2,642 a month.

The lender uses the higher figure, along with property tax, heating and any condo fees, when it checks your debt-service ratios. You still pay the contract rate; the test only decides how much you can borrow. These figures are illustrations, not a quote.

What this means for your budget

• Get a pre-approval before you shop, so you know your number at the qualifying rate.
• Paying down car loans or credit lines can raise the amount you qualify for.
• Leave room for closing costs, which CMHC estimates at 1.5% to 4% of the price (CMHC).

Need a hand with this?

Call or text me at 647-667-5555. I work across Richmond Hill, Markham, Vaughan and the rest of York Region, in English and Persian (فارسی).

Related reading

• First-time home buyer checklist for Richmond Hill and the GTA
• Understanding closing costs for Ontario homebuyers
• Ontario land transfer tax and the first-time buyer rebate in York Region

Sources

• OSFI, Minimum qualifying rate for uninsured mortgages
• TRREB, MLS HPI tables, September 2026
• CMHC, Homebuying Step by Step

All sources accessed October 2026.

Farshad Fazaeli, International Realty Firm, Inc., Brokerage. Unit 104, 391 Major Mackenzie Dr E, Richmond Hill, ON L4C 1H8. Phone 647-667-5555. This article is general information, not legal, tax or mortgage advice. Market figures are board-wide summaries and are not an appraisal of any property. Not intended to solicit buyers or sellers already under contract with a brokerage.