Canada Mortgage Stress Test Explained

Applies to all Canadian homebuyers since 2018; must prove ability to pay if rates rise.
Test uses higher of 5.25% or offered rate + 2% to assess affordability.
Directly impacts mortgage qualification and borrowing amount; may require higher down payment or lower budget.
2024 update: No test needed for straight switch to new lender with same terms.
Test aims to prevent excessive debt; use affordability calculators or consult specialists for guidance.