The mortgage stress test requires that your lender check if you could still afford your mortgage payments if interest rates were to rise. You must qualify at the higher of either 5.25% or your mortgage contract rate plus 2%.

For properties under $500,000, the minimum is 5%. For properties between $500,000 and $999,999, it's 5% on the first $500,000 and 10% on the rest. For properties $1 million or over, the minimum is 20%.

A fixed-rate mortgage locks in your interest rate for the entire term, so your payments never change. A variable-rate mortgage fluctuates with the lender's prime rate, so your payments could change.