The OSFI Guideline B-20 stress test requires borrowers to qualify at the higher of the contract rate plus 2% or 5.25%. It applies to all new insured and uninsured mortgages at federally regulated lenders.
For renewals, the rules are more forgiving. Since November 2024, OSFI removed the stress test for uninsured mortgage borrowers switching to a new federally regulated lender at renewal, as long as the borrower is not increasing their loan amount or amortization.
What this means for you
If your credit and income have weakened since origination, you can now shop competing lenders at renewal without the stress test blocking your switch. This dramatically improves negotiating leverage — banks can no longer use the stress test as a moat around their existing customers.