Is Canada's Mortgage Stress Test Going Away? OSFI's 2026 CRM Overhaul

OSFI launched a Credit Risk Management (CRM) Guideline consultation on January 29, 2026. Stakeholder feedback on the consultative document is due July 29, 2026 at creditrisk-risquedecredit@osfi-bsif.gc.ca.

This initiative does not eliminate Canada's mortgage stress test (Minimum Qualifying Rate) by itself. OSFI is consolidating scattered credit-risk expectations into one principles-based guideline over multiple consultation phases. Guideline B-20 and related mortgage letters remain the operative residential mortgage framework during this process.

What is OSFI proposing?

OSFI aims to:

• Consolidate credit risk guidance that now lives across multiple guidelines, notices, advisories, and letters
• Align with international credit risk practice
• Publish future draft chapters on wholesale credit, non-bank financial intermediation, counterparty risk, and real estate secured lending (RESL)

The RESL chapter would eventually absorb Guideline B-20 plus related OSFI mortgage advisories and the 2024 Reinforcing Residential Mortgage Risk Management Practices regulatory notice. OSFI has said it intends to minimize operational disruption because B-20 underpins lender policy and provincial alignment.

Is the stress test going away?

Not under this consultation alone. The CRM project is about how expectations are organized and updated, not an announced repeal of the minimum qualifying rate (MQR) framework.

Brokers should continue applying current B-20 and MQR letter requirements until OSFI publishes and effective-dates new CRM chapters. Any future MQR change would require a separate OSFI announcement, not the January 2026 consultative document by itself.

What should Canadian brokers watch?

| Topic | Current status (July 2026) | |-------|---------------------------| | B-20 underwriting | Still in force as Guideline B-20 (2017) | | MQR / stress test | Governed by OSFI MQR letters and infosheets until superseded | | CRM consultation | Open for comment through July 29, 2026 | | Final CRM RESL chapter | Not yet published; future phased consultation |

Files should be underwritten to today's OSFI expectations, not anticipated CRM text.

Practical takeaways

1. Do not tell borrowers the stress test is ending based on CRM consultation headlines alone.
2. Review lender policy for how your institution tracks OSFI quarterly releases and consultation timelines.
3. Submit or monitor industry comments if your brokerage participates in association feedback to OSFI before July 29, 2026.

Where to verify

• Consultative document on Credit Risk Management (January 29, 2026)
• Backgrounder: Consultative document on Credit Risk Management

For more on agency mortgage guidelines, see the Agency Guidelines hub.

This article is for informational purposes only and is not professional advice. Always verify against current guidelines before making decisions.