The OSFI stress test myth that's costing buyers $80k
Most buyers think the stress test caps what they can borrow. It doesn't — it caps what one specific lender thinks they can borrow. Here's how to use that.
I had a buyer last month who was "pre-approved for $720k" by their bank. We re-shopped with a B-lender broker. New approval: $805k, same income, same rate within 8 basis points.
How that's possible
The OSFI Minimum Qualifying Rate (contract + 2% or 5.25%, whichever is higher) is federal. Every federally-regulated lender uses it. But how each lender treats:
- Bonus and overtime income (some count 100%, some 50%)
- Rental income offset (35% vs 50% vs 80%)
- Existing debt amortization on car loans
- Self-employed add-backs
…varies by 15–25% in real qualifying power. That's the gap.
The play
Always get a second opinion from an independent broker, not just your bank. Brokers compete; banks don't. The five minutes costs nothing and routinely unlocks 10–15% more buying power.
What it doesn't mean
"More you can borrow" ≠ "more you should borrow." The stress test exists because the Bank of Canada raised rates 475 basis points in 18 months. It will happen again. Borrow to the comfortable-payment number, not the maximum-approval number.