Mortgage qualification rules in Canada
Federally regulated lenders apply a minimum qualifying rate — the greater of your contract rate plus 2% or 5.25% — and set minimum down payments and…
The stress test
Under OSFI Guideline B-20, federally regulated lenders must qualify you at the greater of your contract rate plus 2 percentage points or 5.25%. This ensures you could still afford the payments if rates rose.
Minimum down payment
- 5% on the portion of the purchase price up to $500,000.
- 10% on the portion between $500,000 and $1,500,000.
- 20% on any portion above $1,500,000.
A down payment below 20% requires mortgage default insurance.
Amortization
The maximum amortization for a high-ratio (insured) mortgage is 25 years. Longer amortizations may be available on uninsured mortgages.
Debt-service guidelines
Lenders commonly use a gross debt service guideline of 32% and a total debt service guideline of 40%, though each lender sets its own limits and assesses your full financial picture.
Source: OSFI — Guideline B-20: Residential Mortgage Underwriting Practices and Procedures — Office of the Superintendent of Financial Institutions. Retrieved 2026-09-16.
Sources
- OSFI — Guideline B-20: Residential Mortgage Underwriting Practices and Procedures — Office of the Superintendent of Financial Institutions
- Interest Act (R.S.C., 1985, c. I-15) — Government of Canada — Justice Laws
Frequently asked questions
What is the mortgage stress test rate?
The greater of your contract rate plus 2 percentage points or 5.25%, under OSFI Guideline B-20.
How much down payment do I need in Canada?
5% on the portion up to $500,000, 10% on the portion between $500,000 and $1,500,000, and 20% above $1,500,000. A down payment under 20% requires mortgage default insurance.
What is the maximum mortgage amortization?
25 years for a high-ratio insured mortgage. Longer amortizations may be available on uninsured mortgages.
Important legal information
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