Glossary · Buying and financing
Mortgage stress test
The mortgage stress test requires you to qualify at the higher of 5.25% or your contract rate plus two percentage points, even though you'll pay the contract rate.
It limits how much a lender will approve, which is why a pre-approval matters before you write an offer. Your mortgage broker or bank runs the numbers; your realtor uses the approved amount to set a realistic search range.
Related terms
General information, not legal or tax advice. Rules change; confirm the current figures with the province or your notary or lawyer before relying on them.
