The Office of the Superintendent of Financial Institutions (OSFI) announced that, effective June 1, 2021, it will implement a new minimum qualifying rate (stress test rate) for mortgages. The new stress test rates are confirmed to affect both insured and uninsured mortgages (where borrowers have at least a 20% down payment) and will increase to 5.25% or 2% points above the market rate, whichever is higher (current average rate reported by Canada’s biggest lenders is 4.79%). This is accompanied by a similar hike in stress test level for insured mortgages as announced by The Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland. OSFI Assistant Superintendent of Regulation, Ben Gully, states that “the rate in place as of June 01, 2021 will help support financial resilience should economic circumstances change, while our commitment to review the qualifying rate at least annually will contribute to continued confidence in the Canadian financial system” (2021).

While the goal of these changes is to ensure the stability of the system for banks, the changes are good for homebuyers in the long run as well. James Laird, co-founder of Ratehub.ca and president of mortgage brokerage CanWise Financial, states that "in the near term, this change will make it more difficult for first-time homebuyers to qualify for a mortgage, since the move will have the effect of lowering buyers' purchasing power by about five per cent once it's in place in June. However, if this policy has the desired effect of slowing home value appreciation, it may be a good thing for first-time homebuyers in the long run" (2021).