The stress test,
for physicians.
Every Canadian borrower is qualified at a rate higher than they actually pay. For physicians, the test still applies, but it runs against projected income, which is why large purchases still pass.
The short answer.
The Canadian mortgage stress test (OSFI B-20) requires borrowers to qualify at the higher of their contract rate plus 2% or a 5.25% floor. Physician programs apply the same stress test but run it against projected attending income rather than current salary, which is why residents and attendings still pass on larger purchases that standard qualification would reject.
How the stress test works.
Under OSFI guideline B-20, every Canadian mortgage borrower must qualify not at the rate they will pay, but at a higher qualifying rate: the greater of the contract rate plus two percentage points, or a 5.25% minimum floor.
The point is to confirm you could still carry the mortgage if rates rose, which protects borrowers and the system from over-borrowing.
Why physicians still pass.
Physician programs do not waive the stress test. They apply it, but against projected attending income rather than a current resident stipend or a low incorporated T4. A purchase that fails the stress test on $70,000 of stipend can comfortably pass on $320,000 of projected attending income.
Questions doctors ask.
All guidesWhat is the mortgage stress test in Canada?
Under OSFI guideline B-20, borrowers must qualify at the higher of their contract rate plus 2% or a 5.25% floor, confirming they could still carry the mortgage if rates rose.
Does the stress test apply to physician mortgages?
Yes. Physician programs apply the same stress test, but they run it against projected attending income rather than current salary, which is why larger purchases still pass.
What qualifying rate do physicians face?
The same as everyone: the higher of the contract rate plus 2% or 5.25%. The difference is the income figure the test runs against, which under physician programs is projected attending income.
