Skip to content

No Mortgage Stress Test: Qualifying for a Higher Home Purchase Price

You must pass the mortgage stress test if you’re putting less than 20% down on a property. However, for those with at least 20% down, you can avoid the stress test by working with a credit union or alternative lender.

without stress test

Credit Unions

The mortgage stress test is a federally regulated rule. That means that the banks and non-bank lenders operating across the country must follow it. However, not all lenders are.

Have you ever considered getting your mortgage from a credit union? Credit unions are more localized lenders. Most are provincially regulated, meaning borrowers aren’t required to pass the mortgage stress test.

With a credit union, the rates may be slightly higher, but if you don’t need to pass the stress test, it could mean you qualify to spend 20% more on a property. If you’re buying in a market like Calgary, Toronto or Vancouver, this could mean the difference between affording a condo and a house.

Alternative Lenders

If you’re not able to find a local credit union that will approve you for a mortgage, another option worth exploring are alternative lenders.

Alternative lenders operate across the country, but because they are outside the prime lending space, they aren’t required to stress test borrowers.

Alternative lenders offer niche mortgage products that can help you qualify to spend more on a home. For example, some offer mortgages where you don’t need to be stress tested.

If that’s not enough, you could also sign up for one with an extended amortization period. Not having to pass the stress test, coupled with an extended amortization, could mean that you could spend well over 20% or more on a home.

How the Canadian Mortgage App Can Help

With the Canadian Mortgage App, you can find out how much you could afford with rental income.

With the GDS/TDS and Stress Test calculators, you can see how much more you could afford to spend on a home if you weren’t required to pass the mortgage stress test.

What are you waiting for? Download the Canadian Mortgage App today to try it out.

Connect with a licensed Mortgage Pro

Scan QR to Get Started

or learn how to do it manually

Quick, easy and accurate.
Simply Powerful.

Download CMA for Free

How to get the app

Since you are not glued to your phone (for once), you have 3 options for downloading the app

Text yourself a link

.. and have no fear, we don't save your number.

Scan this QR code and go to the app store

OR check us out on the App Store or Google Play