The Stress Test in Brief
The mortgage stress test requires you to show you could still afford your payments at a higher rate than the one you are actually getting. For most mortgages today, you must qualify at the greater of your contract rate plus 2% or 5.25%. The Office of the Superintendent of Financial Institutions (OSFI) reviews the qualifying rate for uninsured mortgages at least once a year, and insured mortgages are subject to a similar federal rule.
The stress test does not change the rate you pay. It only affects how much you qualify for.
At a Glance: When Does the Stress Test Apply?
- Renewing with your current lender: No stress test. You can renew with the lender you already have without requalifying.
- Switching to a new lender at renewal (a “straight switch” or transfer): No stress test, as long as you are not increasing the mortgage amount or extending the amortization. Since November 21, 2024, this applies to both insured and uninsured mortgages.
- Switching lenders and borrowing more or extending the amortization: The stress test applies. This is treated as a refinance, not a straight switch.
- Porting your mortgage to a new home: The stress test generally applies. Your lender must approve the new property and requalify you.
- Porting and increasing the mortgage (blend-and-increase): The stress test applies to the new, larger mortgage.
Transfers at Renewal: More Freedom Than Before
Before the November 2024 change, many homeowners with uninsured mortgages (20% or more down, or refinanced) felt stuck at renewal. If rates had risen or their income had changed, they might not pass the stress test with a new lender, so they had little choice but to accept whatever renewal offer their current lender sent.
That is no longer the case. If you are keeping the same mortgage balance and the same remaining amortization, you can now shop your renewal and move to another lender without passing the stress test. The new lender will still review your income, credit and debt ratios, but it no longer has to qualify you at the higher stress-test rate.
This makes renewal time a real opportunity. I regularly compare renewal offers against what other lenders will provide, and a straight switch is often the easiest way to secure a better rate or better terms.
Porting: You Keep Your Rate, But You Still Requalify
Porting lets you take your existing mortgage—including your rate and remaining term—to a new home, usually avoiding a prepayment penalty. That can be valuable, especially if your current rate is lower than today’s rates.
However, a port is not automatic. Because the mortgage is moving to a different property, the lender treats it much like a new application:
- The new property must meet the lender’s requirements
- Your current income, credit and debts are reviewed again
- You generally must pass the stress test on the mortgage you are carrying to the new home
- The sale of your old home and purchase of the new one usually need to close within the lender’s porting window
If you need more money for the new home, most lenders offer a port-and-increase (sometimes called blend-and-increase). The additional funds are priced at today’s rates and blended with your existing rate, and the full new mortgage must qualify under the stress test.
Why This Matters If Your Income Has Changed
The requalification step is where ports most often run into trouble. A spouse leaving a job during a move, a switch to self-employment, a new car loan, or simply higher rates can mean you no longer qualify for the same mortgage you have today.
If a port won’t work, the alternatives usually include breaking the mortgage and paying the penalty, arranging a new mortgage with a different lender, or adjusting the purchase price or down payment. The right choice depends on the size of the penalty, today’s rates and how long you plan to stay in the new home.
Military Families and Portability
For Canadian Armed Forces members, portability is often one of the most important features of a mortgage because another posting may arrive before the term ends. Requalification still applies when you port, so it is worth reviewing your situation well before your House Hunting Trip. See my CFB Trenton military relocation mortgage guide for more on porting, penalties and CAFRD reimbursement.
How I Can Help
- Checking whether your current mortgage can be ported and what your lender’s porting window is
- Testing whether you will requalify under the stress test before you list your home
- Comparing a port or port-and-increase against breaking the mortgage and starting fresh
- Shopping your renewal and arranging a straight switch to a better lender when it makes sense
- Coordinating sale and purchase dates with your REALTOR® and lawyer
Even if I didn’t arrange your original mortgage, I can review your options and help make sure you get a fair deal.
Call or text Craig Nickerson at 613-394-5810 or email craig@simpligomortgages.com.
Qualification rules, porting terms and lender policies vary and can change. The minimum qualifying rate shown is current as of September 2026. Approval is subject to lender and, where applicable, mortgage default insurer requirements.
