The mortgage stress test is a federal rule that ensures you could still afford your mortgage if rates rose. It doesn't change your actual rate - it changes the rate you have to qualify at.
How it works
Federally regulated lenders qualify you at the greater of your contract rate plus 2%, or the benchmark qualifying rate (currently 5.25%). Your real payment is at your contract rate; you just have to prove you could handle the higher one.
Why it matters
The stress test reduces the maximum mortgage you qualify for. Planning around it - with a larger down payment, less other debt, or a co-applicant - can meaningfully increase your budget.
Have questions about your situation? An advisor can walk you through it.