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No Stress Test on Mortgage Renewals

More good news for people who have been struggling with the mortgage stress test!

It was recommended by FINA (House of Commons Standing Committee of Finance) to the federal government that they “exempt mortgages from the stress-test where the mortgagor has already met the obligations of their original mortgage.” This is great news for existing borrowers who have already proven they can handle the rigors of mortgage repayment.

This recommendation stems from one they received from MPC (Mortgage Professionals Canada) just one week previous, which stated, “We recommend that the federal government implement an exemption to the Guideline B-20 stress test for mortgage holders who have completed and met the obligations for a minimum of five years of their original amortization period, and who wish to switch to a different lender upon renewal.”

MPC’s responsibility is to go to bat against the government on behalf of mortgage owners. For months the issue of the stress test has been front and center for MPC. Their work is seeing happy results for existing and would-be mortgage owners. This announcement follows Finance Minister Morneau’s changes to the stress test qualifying rate.

Contact me today for more information and to stay abreast of all changes in the mortgage market.



Josh Tagg has been the owner of Mortgages For Less since 2006. During that time Josh has developed a reputation for being an industry leader and advocate for client education.


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