For uninsured mortgages at federally regulated lenders, the minimum qualifying rate is generally the greater of the contract rate plus two percentage points or 5.25%. Passing that test does not include every ownership cost or personal risk.
Decision points
- 01
Separate regulatory qualification from household affordability.
- 02
Stress the payment and non-mortgage costs together.
- 03
Confirm the rule and product treatment with the lender or broker.
What the test does
The qualifying rate creates a buffer in lender underwriting. Debt-service calculations also use income and other obligations. Product, insurance, lender, and borrower details can change the actual assessment, so a public calculator cannot promise approval.
Run your own survival test
Model renewal at a higher rate, property tax increases, strata-fee changes, insurance, maintenance, transportation, and a capital reserve. Compare the result with the household’s stable after-tax cash flow and other goals.
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