OSFI Changes Stress Test for Uninsured Mortgages in 2021

Uninsurable Qualifying Rate Spring 2021

What Is Changing For Uninsured Mortgages?

The qualifying rate for uninsured mortgages will be the higher of:

  • the mortgage contract rate + 2%, or
  • 5.25%

How Does The Qualifying Rate Work?

When you apply for a mortgage, the qualifying rate is used when determining your debt-service ratios. Those ratios then must fit within the government criteria for lenders to offer you a mortgage loan. This is not your actual mortgage rate, but rather simulates what your payments would be if interest rates rose. It can also account for changes to your income or being faced with unforeseen expenses.

Who Will This Change Effect?

This new qualifying rate will apply to your file if you are:

  • Purchasing a home for $1,000,000 or more
  • Requiring an amortization longer than 25 years
  • Purchasing a rental or leisure property
  • Renewing your existing mortgage while drawing some of the equity out of your home

An Example Of The Change In Action

Let's consider a property with a $1 million purchase price. For simplicity's sake, we'll take a 30-year amortization and exclude property tax, heat, and other debts from the calculation.

Before June 1, 2021: with a qualifying rate of 4.79%, you would need a household income of $128,500 and the minimum down payment of $200,000.

After June 1, 2021: with a qualifying rate of 5.25%, you would need either a household income of $135,500 ($7,000 more than the current stress test) OR a down payment of $240,000.

When Will This Change Happen?

OSFI comfirmed that the new minimum qualifying rate will come into effect on June 1, 2021. In the future, the qualifying rate will be evaluated annually, in December of the year before the new minimum will come into effect.

If you want to know what the new Uninsured Mortgage Stress Test means for you, give our team a call at 250-590-6520. We keep track of key developments relating to home ownership in order to provide you with the best possible solution for your situation.


Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.

This post reflects the best available information at the time of writing/last update. In order to ensure that you have the most up-to-date information, contact us to confirm the details for your specific situation.