Before you even start home shopping, you need to understand Canada’s mortgage stress test. It determines how much home you can actually afford to borrow.

What Is It? It means you must qualify for your mortgage at the higher of:

1. The Bank of Canada's benchmark rate (currently 5.25%), or
2. Your contract rate + 2%

Why It Matters:

1. It protects you from rising interest rates
2. It affects your buying power

Tip: If you were pre-approved a few months ago, redo it before house hunting—rates and rules change quickly.

Need help understanding how the stress test affects you? I can help you calculate your safe borrowing limit.