Mortgage Stress Test Calculator

What is the Mortgage Stress Test?

All federally regulated lenders in Canada must qualify you at the higher of: your contract rate + 2% or 5.25%. This ensures you can still afford payments if interest rates rise. Use this calculator to see if you'll pass the stress test and determine your maximum qualifying amount.

📊 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 Payment
  • Maximum Home Price $0
  • Maximum Mortgage $0

🔴 At Qualifying Rate (Stress Test)

Rate: 6.59%
$0
Monthly Payment (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: All federally regulated lenders (banks, credit unions under federal jurisdiction)
  • Impact: Typically reduces your borrowing power by 15-20% compared to no stress test
  • 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
⚠ī¸ 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.