What Are The

New Changes

To The Stress Test?

Here are the new changes to the BC Mortgage Stress Test

The new stress test rules, which come into place on June 1, will make qualifying for a mortgage harder for first-time buyers.


The minimum qualifying rate has been increased to determine whether borrows can handle payments should interest rates increase.


Below, we've provided some clarity as to what those changes will be and what they mean.


  • What Is The Stress Test?

    It's a 'qualifying rate' that is used to determine your maximum ability to borrow if interest rates were to increase.


    You don't have to pay this rate, but have to show that you could if it were needed.

  • What Is The New Proposal?

    The proposed changes see to increase the stress test for all application from 4.79% to 5.25%.


    This is 200BPS (2%) above the contract rate.



  • Who Does It Impact?

    This impacts all insured, insurable, and conventional mortgage types.


    It will impact you whether you are putting more or less than 20% as your down payment.



  • How Much Will It Impact You?

    The impact of the new changes will result in:

    • $5,000 less per $100,0000 borrowed.*
    • 4% to 6% decrease overall in borrowing power.*
    • $3,100 less mortgage per $10,000 of income.*

    *All information is estimated, to verify the specific change please speak to a Thrive Mortgage Co. Broker.

  • When Do These Changes Take Effect?

    The change would take effect for all mortgage approvals on or after June 1st.

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