August 18, 2025
As we head into the final months of 2025, many Canadians are looking ahead to their next mortgage renewal or purchase—but fewer are asking the right question: will I still qualify next year? With new income verification standards, elevated stress test thresholds, and fluctuating rates, qualifying in 2026 may not be as straightforward as it was a few years ago. The Office of the Superintendent of Financial Institutions (OSFI) continues to monitor lending risk closely, and even modest changes to household income or debt can now have a major impact on approval amounts. In short, what qualified last year might not qualify next year.
In Calgary, where average home prices have climbed but wage growth has lagged, this tightening matters. Borrowers renewing in 2026 could face requalification hurdles if they decide to switch lenders. Even those with strong equity may discover that rising living costs or new vehicle loans have reduced their debt service ratios below lender limits. The current qualifying rate—often 2% above the contract rate—means that even if posted rates decline, the bar for approval may stay high. For households relying on variable income, commissions, or self-employment earnings, proving stability is now just as important as the income itself.
The best defense is early preparation. Review your full financial picture at least six months before your next renewal or purchase. Pay down revolving debt, avoid new credit inquiries, and gather updated income documentation, including Notice of Assessment and business statements if you’re self-employed. Calgary homeowners should also consider locking in a pre-approval while rates remain relatively stable. A 120-day rate hold protects you against sudden increases while allowing flexibility if conditions improve. Taking these steps now can mean a smoother qualification later—when competition for lower rates intensifies.
In 2025’s lending environment, qualification isn’t just a number; it’s a moving target. The clients who prepare early, manage their credit actively, and stay in contact with their mortgage professional will be the ones who qualify confidently in 2026. Whether you plan to renew, refinance, or move, now is the time to make sure the next chapter in your mortgage story starts from a position of strength.
Source: Absolute Mortgage Team