The Mortgage Stress Test Changes for EVERYONE on June 1, 2021

Mortgage Stress Test Changes - June 2021

We originally let you know in April 2021 that the mortgage stress test was going to be increasing for uninsured mortgages. The Office of the Superintendent of Financial Institutions (OSFI) confirmed that as of June 1, 2021 all uninsured mortgages will be qualified at a minimum rate of 5.25%.

The same day that OSFI confirmed their decision, the federal Department of Finance released a statement that they will align the minimum qualifying rate for insured mortgages at 5.25% as well.

This means that as of June 1st, all new mortgage submissions will be qualified at the higher of the contract rate + 2% OR 5.25%. You can only lock in the current stress test rate if you have a live deal (accepted offer to purchase or fully submitted refinance/transfer) before June 1st.

Does this mean a reduction in borrowing power? Yes. However, we've done the math and it's a small reduction of 4% -- or $4,000 for every $100,000 you borrow.

We always encourage our clients to check with our team before making an offer on any property they are interested in or making changes to their mortgage. We crunch the numbers one more time at that point to make sure everything lines up.

If that sounds like the kind of service you want for your mortgage financing, start a conversation with us today. Fill out our contact form or give us a call at 250-590-6520 (toll-free 1-855-590-6520) to see how we can find the best 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.