On December 12th, OSFI announced that the minimum qualifying rate for uninsured residential mortgages (MQR) will remain the greater of 5.25 per cent or the mortgage contract rate plus 2 per cent.

OSFI underscored its confidence that the MQR under its current formulation will lead to lower residential mortgage delinquency and default rates than would otherwise be the case.

While there have not been widespread delinquencies or forced sales, many mortgages that were arranged when rates were at their lowest will be coming up for renewal in the next year or two, mostly likely at much higher rates.

The Canada Mortgage and Housing Corp. (CMHC) estimates that 2.2 million mortgages will have to be renewed in 2024 and 2025, representing 45 per cent of all outstanding mortgages in Canada — with those loans totalling $675 billion.