If you renew your mortgage with your current lender at the end of your term, the OSFI mortgage stress test typically does not apply. You can renew at your existing amortization without having to requalify under the stress test, even if your income or financial situation has changed. However, if you switch to a different lender, refinance to access equity, or change your mortgage structure (such as extending the amortization or increasing the principal), you will need to pass the stress test.

What the Stress Test Is

The OSFI mortgage stress test, outlined in guideline B-20, requires federally regulated lenders to qualify you at a rate higher than your actual contract rate. According to the Office of the Superintendent of Financial Institutions, you must qualify at the greater of your contract rate plus 2 percentage points or a minimum floor rate (which has been 5.25 per cent in recent guidance, though this floor can change) (OSFI, 2026). This test ensures you can still afford your mortgage payments if rates rise.

Renewal with Your Current Lender

When your mortgage term ends and you renew with the same lender, you are typically exempt from the stress test. The lender already holds your mortgage, and renewing simply means agreeing to a new term and rate. You do not need to requalify or prove your income again, and your existing amortization period continues. This exemption applies whether you choose a fixed-rate or variable-rate mortgage at renewal, as long as you do not increase the principal amount or extend the amortization beyond what remains.

When the Stress Test Applies

The stress test applies in these situations:

Switching lenders. If you want to move your mortgage to a different lender at renewal to get a better rate or terms, the new lender must qualify you under the stress test. This can be a barrier if your income has dropped, your debt has increased, or rates have risen significantly since your original approval.

Refinancing. If you refinance to access home equity, consolidate debt, or change your mortgage structure, you must pass the stress test. Refinancing increases your loan-to-value ratio or changes the terms of your mortgage, so lenders treat it as a new application.

Read also: Do You Need a Mortgage Stress Test to Switch Lenders in Canada?

Changing the mortgage structure. Extending your amortization period or adding to the principal balance at renewal requires requalification under the stress test, even with your current lender.

Why This Matters

If you plan to switch lenders or refinance, confirm you can pass the stress test before committing. As covered in Principles of Finance, lenders assess your debt-to-income ratios and overall financial stability when qualifying you for a loan. Rising interest rates or changes in your financial situation can affect your ability to qualify. The Financial Consumer Agency of Canada recommends comparing your current rate and terms with what is available in the market, then deciding whether switching is worth the requalification requirement (FCAC, 2026).

What to Do Next

If your renewal is approaching, contact your current lender to discuss your options and the rates they can offer. If you want to explore switching lenders, speak with a licensed mortgage broker who can assess whether you meet the stress test criteria and compare offers across lenders. The Canada Mortgage and Housing Corporation provides resources to help you understand the renewal process and your rights as a borrower (CMHC, 2026).

Financial Disclaimer: This article provides general educational information about the OSFI mortgage stress test and mortgage renewals in Canada. It is not personalized financial, lending, legal, or tax advice, and is not an offer or commitment to lend. Mortgage rules, qualifying rates, and stress test requirements vary by lender, province, and your personal circumstances. Rates and regulatory guidelines change frequently. For advice specific to your situation, consult a licensed mortgage broker or your financial institution.