What is the qualifying rate for an uninsured mortgage?

OSFI’s current minimum is the greater of the mortgage contract rate plus 2% or 5.25%. The same calibration applies to insured mortgages under the Minister of Finance rule.

Who is not underwritten on the residential qualifying-rate DSCR?

Five or more residential units move to commercial or CMHC MLI Select DSCR rules. Provincially regulated credit unions set their own policy. Always confirm with the lender that will fund the file.

DSCR at the qualifying rate

DSCR is NOI divided by annual mortgage payments. In Canada, on a 1–4 unit residential rental at a federally regulated lender, you also re-run that coverage at the qualifying rate — not only at your contract quote.

The rate the lender uses

OSFI’s current minimum qualifying rate for uninsured mortgages is: "The greater of the mortgage contract rate plus 2% or 5.25%." (Fetched 29 Sep 2026: https://www.osfi-bsif.gc.ca/en/supervision/financial-institutions/banks/minimum-qualifying-rate-uninsured-mortgages) OSFI’s B-20 infosheet states the same calibration: "As of June 1, 2021, the qualifying rate for all uninsured mortgages is the greater of the mortgage contractual rate plus 2% or 5.25%. The Minister of Finance implemented the same test for insured mortgages." (Fetched 29 Sep 2026: https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/infosheet-residential-mortgage-underwriting-practices-procedures-guideline-b-20) The stress test does not change the payment you write each month. It changes the payment the lender puts in the ratio when it decides whether you qualify.

What "DSCR at Q" means on a rental

Build NOI the usual way: in-place or conservative market rent, minus vacancy, taxes, insurance, utilities you pay, management, and a real repair reserve — before debt. Annual debt service at the contract rate gives contract DSCR. Annual debt service at the qualifying rate gives the Q row. A building that clears coverage at contract can fail the same NOI test once the payment is recomputed at contract plus two percentage points (or at 5.25% if that floor is higher). Rental offsets and add-backs are lender policy; the rate used in the payment side of the test is not optional at a federally regulated lender.

Who leaves this screen

Five or more residential units leave the B-20 residential file and move to commercial or CMHC MLI Select underwriting, tested on the lender’s DSCR rules rather than the residential qualifying-rate formula. Provincially regulated credit unions set their own policy. Always confirm with the lender that will fund the file.

Analyze

On Analyze, debt service and DSCR print at both rates on one page. Running the numbers is free and works on any Canadian address; sign in to save.

Questions

What is the qualifying rate for an uninsured mortgage?: OSFI’s current minimum is the greater of the mortgage contract rate plus 2% or 5.25%. The same calibration applies to insured mortgages under the Minister of Finance rule.
Does the stress test change my monthly payment?: No. It changes the payment the lender puts in the ratio when it decides whether you qualify — not the payment you write each month.
Who is not underwritten on the residential qualifying-rate DSCR?: Five or more residential units move to commercial or CMHC MLI Select DSCR rules. Provincially regulated credit unions set their own policy. Always confirm with the lender that will fund the file.

Analyze a deal

Analysis for information only. Not lending, tax, legal, or investment advice. Confirm current CMHC and OSFI rules with a licensed advisor.