Does the stress test apply when I renew my mortgage?

No, in Canada the stress test does not apply to most renewals. Renewing with your current lender generally does not require you to re-qualify. Since November 21, 2024, a straight switch of an uninsured mortgage to another federally regulated lender is also exempt, as long as you do not increase the amount or the amortization.

What the stress test is

The stress test checks that you could afford your mortgage at a higher rate. Federally regulated lenders qualify you at the greater of your contract rate plus 2 percentage points, or 5.25%, OSFI's minimum qualifying rate (checked October 2026). The stress test limits how much you can borrow; it does not change what you pay.

The stress test applies when you buy, and when you refinance or take out a home equity line of credit. Renewal is treated differently, depending on what you change.

Three renewal paths

Renewing with your current lender. You sign a new term for the balance you owe. Your lender generally does not put you through the stress test again. Read the renewal statement closely; federally regulated lenders must send it at least 21 days before your term ends.

A straight switch to another lender. You move the same balance, over the same remaining amortization, to a new lender at maturity. The amortization is the total time left to pay the loan off. OSFI does not expect lenders to apply the stress test when an uninsured mortgage moves to another federally regulated lender this way. Insured mortgages, those that carry default insurance, can also switch at renewal without re-qualifying (source: Canadian Mortgage Charter, Financial Consumer Agency of Canada briefing note, checked October 2026).

Changing the mortgage. If you add money, extend the amortization or add a HELOC, the move is no longer a straight switch. The new mortgage is a refinance, and the stress test applies at the greater of your contract rate plus 2 points or 5.25%.

What the exemption does not remove

The exemption takes away the stress test, not the new lender's own review. A lender you switch to still looks at your credit, your income and the property, and can decline. If your income has dropped or your credit has changed since you last qualified, talk to us before you assume a switch will go through.

Ontario credit unions are provincially regulated, and their qualifying rules can differ. Moving to or from a credit union can work differently, which is one more reason to compare offers early rather than wait for the renewal letter.

The timing of a switch matters too. Before maturity, moving your mortgage usually means a prepayment penalty, so most switches happen at the end of the term.

What to do next

To see how a stress-test rate affects what you could borrow, try the stress test calculator; results are estimates only, not an offer or advice. Or use our call-me-back form and we will check whether your renewal qualifies as a straight switch.