The Office of the Superintendent of financial Institutions (OSFI) recently decided to maintain the minimum qualifying rate for uninsured mortgages, sticking to the greater of 5.25% or two percentage points above the contract rate. This decision was mirrored by the federal Finance Minister for insured mortgages. 
Despite calls for change, particularly from industry leaders such as the Canadian Home Builders’ Association (CHBA), OSFI has shown no sign of budging. The CHBA has advocated for a lower stress test rate. Arguing that it would facilitate homeownership and boost home construction. They have also been trying to encourage longer-term mortgages, suggesting the 7- and 10-year terms would enable buyers to be much more stable when they come out of their mortgage term and they look to renew.
Advocates for change argue that easing the stress test could make homeownership more accessible without compromising financial stability. With home prices dropping in many Canadian markets, high interest rates and the stress test continue to hinder affordability.
While the stress test aims to protect borrowers from interest rate hikes and economic shocks, critics argue that it may be too stringent, preventing many potential buyers from entering the market. As discussions continue, the balance between financial prudence and housing accessibility remains a key concern for policy makers and industry stakeholders alike.
