If you’ve purchased a home in the last several years, or plan to buy one soon, there’s a good chance you’ve heard about the mortgage stress test. Since 2018, the stress test has served as a set of rules banks and lenders use to determine if you qualify for the mortgage you want. It’s possible to have passed the stress test without even knowing it, so it’s good to review how it works.
This video outlines what the mortgage stress test is, why it was created, and how it applies to all Canadian home buyers, whether you are applying for your first mortgage or renewing or refinancing an existing one.
Watch: MoneySense – What is the mortgage stress test?