Canada’s Superintendent of Financial Institutions announced Thursday that the stress test rate for mortgage applications will remain the same after his annual review.
The minimum qualifying rate (MQR), also known as the stress test, will remain at whichever is greater—the mortgage contract rate plus a 2 percent buffer, or 5.25 percent. So, if a mortgage contract rate is 6.45 percent—the current prime rate in Canada—lenders regulated by the government must ensure borrowers could pay their bills at a rate of 8.45 percent.
