OSFI sees mortgage stress test ‘imbalance’ at renewal but rules not changing yet

Canada's banking regulator acknowledged an "imbalance" in the application of the mortgage stress test for certain homeowners renewing their terms. The stress test requires borrowers to qualify at a rate of 5.25% or two percent above the contract rate. Homeowners renewing with the same lender are exempt from re-passing the test, but those changing lenders must pass it again. The regulator is not contemplating waiving the stress test for uninsured mortgages at renewal, but is exploring ways to address the perceived unfairness.