Mortgage Stress Test Calculator
Canada's federal mortgage stress test requires every buyer to qualify at a rate 2% above their actual mortgage rate, or 5.25%, whichever is higher. This calculator shows your qualifying rate and the maximum purchase price you qualify for.
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Your stress test results
What is the mortgage stress test?
The stress test was introduced by the federal government in 2018 and applies to all insured mortgages — and since 2021, to all uninsured mortgages too. The rule is straightforward: your lender must confirm you can afford the mortgage payments at a rate 2% higher than what they're offering you, or 5.25%, whichever is higher.
In practice, this means most buyers qualify for roughly 20% less than they would without the test. A couple earning $150,000 combined, with $100,000 down and no other debts, qualifies for significantly less than they might expect from a quick online search. This calculator applies the real qualifying rate to give you an honest number.
GDS and TDS ratios
Lenders use two ratios to assess affordability. The Gross Debt Service (GDS) ratio measures your housing costs — mortgage payment, property tax, heating, and 50% of condo fees if applicable — as a percentage of gross income. The limit is generally 39%. The Total Debt Service (TDS) ratio adds all other debt payments on top. The limit is 44%. This calculator uses the TDS ratio to determine your maximum qualifying mortgage.