Mortgage Stress Test Calculator

What is the Mortgage Stress Test?

For most newly underwritten mortgages at federally regulated lenders, the qualifying rate is the higher of your contract rate + 2% or 5.25%. Eligible straight switches at renewal may be exempt under current rules. Use this calculator to estimate qualification for a purchase or other situation where the stress test applies.

📊 Your Financial Information

🏠 Home Purchase Details

✓

You Pass the Stress Test!

You qualify for a mortgage under the stress test requirements.

Your Qualifying Rate

0.00%

Higher of: Contract Rate + 2% or 5.25%

💰 At Your Contract Rate

Rate: 4.59%
$0
Monthly Housing Cost
  • Maximum Home Price $0
  • Maximum Mortgage $0

🔴 At Qualifying Rate (Stress Test)

Rate: 6.59%
$0
Monthly Housing Cost (What You Must Qualify For)
  • Maximum Home Price $0
  • Maximum Mortgage $0

Payment Breakdown (At Qualifying Rate)

Mortgage Payment (P&I) $0
Property Tax $0
Heating $0
Other Debts $0

Debt Service Ratios

Gross Debt Service (GDS)
Housing costs / Income (max 39%)
0%
Good
Total Debt Service (TDS)
All debts / Income (max 44%)
0%
Good

Understanding the Stress Test:

  • Qualifying Rate: You must prove you can afford payments at the higher of your contract rate + 2% or 5.25%
  • Why it exists: Protects borrowers from being over-leveraged if interest rates rise
  • Who it applies to: Most newly underwritten mortgages at federally regulated lenders; eligible straight switches at renewal can be exempt
  • Impact: The reduction in borrowing capacity varies with your income, debts, housing costs, down payment, amortization and the qualifying-rate gap
  • GDS Limit: Housing costs should not exceed 39% of gross income
  • TDS Limit: Total debt payments should not exceed 44% of gross income
  • Some private lenders and credit unions may have different requirements
⚠️ Important Disclaimer: This calculator provides estimates based on standard stress test rules. Actual mortgage qualification depends on your complete financial profile, credit score, employment history, and specific lender criteria. The stress test rate is currently the higher of your contract rate + 2% or 5.25%, but this is subject to change by regulators. Always get pre-approved with a lender for accurate qualification amounts.

Frequently Asked Questions

What is the mortgage stress test in Canada? +
For mortgages subject to the federal minimum qualifying rate, borrowers qualify at the higher of the contract rate plus 2% or 5.25%. For example, a 4.59% contract rate is tested at 6.59%. The rule commonly applies to new mortgages and refinances at federally regulated lenders, while eligible straight-switch renewals can be exempt under current rules.
How much does the stress test reduce my borrowing power? +
There is no fixed percentage reduction. The effect depends on the gap between your contract and qualifying rates plus income, debts, property taxes, heating, condo fees, amortization and down payment. Use your own inputs for a meaningful estimate.
Does the stress test apply to mortgage renewals? +
If you renew with your existing lender without making material changes, the stress test generally does not apply. Eligible straight switches to a new lender can also be exempt when the loan amount and amortization are not increased. Refinancing, taking additional equity out, or otherwise materially changing the mortgage can still require re-qualification under the applicable rules.
Can I avoid the mortgage stress test? +
The federal OSFI minimum qualifying rate applies to federally regulated lenders. Some provincially regulated credit unions or private lenders may follow different qualification rules, depending on provincial requirements and the lender. Alternative lenders can also have different rates, fees, and underwriting standards, so compare the full cost and terms rather than assuming a stress-test exemption is automatically better.
What is the qualifying rate for the stress test in 2026? +
As of the site review date, the qualifying rate is the higher of the mortgage contract rate plus 2% or the 5.25% floor where the federal MQR applies. The floor and rules can change, so verify the current OSFI requirements when applying.
What GDS and TDS ratios does the stress test use? +
This calculator uses the CMHC-insured planning thresholds of 39% GDS and 44% TDS and calculates the mortgage payment at the qualifying rate. Actual lender and insurer underwriting can be stricter or otherwise differ.