Find out if you would pass the mortgage stress test and the most you could borrow. Lenders qualify you at the higher of your rate plus 2% or 5.25%, with housing costs under 39% of income and all debts under 44%.
Use gross household income before tax.
How the mortgage stress test works
Every federally regulated lender must check that you could still afford your payments if rates rose. They calculate your payment at the qualifying rate, the higher of your contract rate plus 2 points or 5.25%, then check two ratios:
- GDS (gross debt service): mortgage payment, property tax, heating and half of condo fees, at most 39% of gross income.
- TDS (total debt service): all of the above plus other debt payments, at most 44%.
How to pass more easily
- Pay down car loans and credit cards first. Every $100 a month of debt cuts your borrowing power by roughly $15,000 to $20,000.
- Choose a 30-year amortization if you qualify for one.
- Add a co-borrower’s income.
- Save a bigger down payment with an FHSA.
See your monthly payments with the Canadian mortgage calculator.
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Frequently asked questions
What is the stress test rate in Canada?
The higher of your mortgage rate plus 2% or 5.25%. At a 4.2% rate, you qualify at 6.2%.
Do I need the stress test to renew?
Not if you renew with the same lender, and since November 2024 not for an uninsured straight switch to a new lender either.
Does this include CMHC insurance?
No. With less than 20% down, CMHC insurance is added to the loan, so your mortgage will be a little higher.
This calculator gives an estimate for general information only. Not financial advice.
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