To place this in perspective, right here’s what the state of affairs would appear to be for a borrower choosing a variable charge on a mortgage of $700,000, underneath the stress take a look at guidelines:  Contract ChargeStress Check ChargeRate of interest (5-year variable)1.50%5.25%Month-to-month mortgage fee $2,798$4,171Curiosity part of fee $872$3,030Proportion of curiosity being paid every month31.2%72.6%Mortgage stability paid after two years$46,886$28,814On this instance, the borrower certified for a month-to-month fee of $4,171 (on the stress take a look at charge of 5.25%), despite the fact that their precise month-to-month fee was solely $2,798 (on the contract charge 1.5%). This created a fee distinction or buffer of $1,373 per thirty days—a security web of $16,481 per yr established by the stress take