Mortgage Stress Test Calculator Canada

Calculate whether you would pass the Canadian mortgage stress test under current OSFI rules. The stress test (formally, the Minimum Qualifying Rate or MQR) requires you to qualify at the greater of 5.25% or your contract rate plus 2%, rather than at your actual contract rate. This calculator applies the same MQR + GDS + TDS math used by federally regulated Canadian lenders.

MQR Floor
5.25%
or contract rate + 2%, whichever is higher
GDS Limit
39%
of gross income on housing costs
TDS Limit
44%
of gross income on total debt

How the Stress Test Works in 2026

The Canadian mortgage stress test is an OSFI rule (Guideline B-20) that has been the binding qualifying constraint for most Canadian borrowers since 2018. It exists to ensure new borrowers can absorb a meaningful rate increase without payment-shock distress at renewal. The qualifying rate — the Minimum Qualifying Rate, or MQR — is the greater of 5.25% or your contract rate plus 2 percentage points.

Federally regulated lenders apply the MQR to two ratios. GDS (Gross Debt Service) sums your principal and interest at the MQR, your property taxes, and your heating costs, and caps the total at 39% of gross household income. TDS (Total Debt Service) adds your other monthly debt payments (car loans, credit cards, student loans) and caps the combined total at 44% of gross income. Whichever ratio binds first sets your maximum qualifying mortgage.

As of November 21, 2024, OSFI removed the MQR requirement for uninsured straight-switch renewals — borrowers moving an existing mortgage to a new lender at renewal without changing the loan amount, amortization, or payment schedule no longer need to re-qualify at the stress-test rate. Insured mortgages have not required the test on straight switches for years. The stress test still applies to new purchases, refinances, equity take-outs, and any renewal where loan terms change.

Stress Test FAQs

What is the mortgage stress test in Canada?▾
The mortgage stress test is an OSFI-mandated qualifying rule (Guideline B-20) that requires borrowers to qualify at the higher of 5.25% or their contract rate plus 2%, rather than at the actual contract rate. The qualifying rate is called the Minimum Qualifying Rate (MQR). It applies to all federally regulated lenders for new mortgages and most refinances, and has been the binding qualifying constraint for the majority of Canadian borrowers since 2018.
Do I still need to pass the stress test at renewal?▾
Not always. As of November 21, 2024, OSFI removed the stress test requirement for uninsured straight-switch renewals — borrowers moving an existing mortgage to a new lender at renewal without changing the loan amount, amortization, or payment schedule do not have to re-qualify at the MQR. Insured mortgages have not required the stress test on straight switches since long before that change. The stress test still applies if you refinance, increase your loan amount, or extend amortization.
How does this calculator apply the stress test?▾
The calculator computes the Minimum Qualifying Rate (max of 5.25% and your contract rate + 2%), then runs the GDS and TDS ratios at that qualifying rate. GDS (Gross Debt Service) caps your principal + interest + property tax + heat at 39% of gross income; TDS (Total Debt Service) caps PITH + other debts at 44%. Whichever ratio binds first sets your maximum qualifying mortgage. The calculator shows you both ratios so you can see which one is binding and what would change if either input moved.
What happens if I fail the stress test at renewal?▾
If your existing lender offers you renewal terms and you accept them as a straight switch with no changes, the stress test does not apply — your existing lender does not re-qualify you. Where the stress test can trap you is if you want to switch to a new lender and your new amount, amortization, or payment changes; or if you want to refinance to pull equity, consolidate debt, or extend amortization. In those cases, failing the stress test means staying with your current lender on whatever terms they offer, even if a competitor lists a better rate.
Does the stress test apply to credit unions and private lenders?▾
It applies to all federally regulated lenders (the Big 5, most monoline lenders, and federally chartered credit unions). Provincially regulated credit unions and most private lenders are not subject to OSFI Guideline B-20 and may use their own qualifying rules — some apply the contract rate without a stress-test floor, but pricing usually compensates for the looser qualifying. For most Canadian borrowers, the choice is between an OSFI-regulated lender at OSFI rules or a non-OSFI lender at a higher rate.
What changed in the stress test in 2024 and 2025?▾
Three changes matter. (1) November 2024 OSFI straight-switch rule: removed the MQR requirement for uninsured renewal switches that do not change loan terms. (2) December 2024 CMHC reform: the insured mortgage cap rose to $1.5M and 30-year amortization was extended to all first-time buyers and new-build purchases — affecting eligibility for the test, not the test math itself. (3) The 5.25% floor and contract+2% structure of the MQR remain unchanged through 2026. There has been no further loosening of the stress-test floor.

Related Tools & Guides

Affordability Calculator →
How much house can you afford? Same stress-test math framed for new buyers.
Renewal Calculator →
See your new payment at current rates if your term ended today.
Research Guides →
Long-form analysis of OSFI rules, renewal strategy, and the 2026 rate path.
Ask the AI →
Ask any Canadian mortgage question. Answers are grounded in the verified Mortgage Canon.

Mortgage Affordability Calculator Canada

See how much home you can afford based on your income, debts, and down payment — calculated using Canada's official GDS/TDS qualification rules.

Parameters

Combined household income before taxes

Cards

Car

Other

Total: $500/mo

Cash available for down payment

Today's best 3yr fixed

30yr only for ≥20% down

Lenders typically use ~$150/mo

50% counted for qualification

Affordability Report
Stress Test6.29%
Maximum Purchase Price
$441,010
Based on $100,000 income
cmhc required
Maximum Mortgage
$391,010
$50,000 down payment
Est. Monthly Payment
$2,184
At 4.29% contract rate
CMHC PremiumFinanced
$12,121
Added to mortgage principal
Limiting FactorDebts
TDS
Total debts limiting factor
Qualification Ratios
GDS
38.0%of 39% limit
TDS
44.0%of 44% limit
Qualified at 6.29% stress test rate
Monthly Housing Costs
Mortgage (P&I)$2,184
Property Taxes$368
Heating$150
Total Monthly Housing$2,702

At your max affordable price of $441,010

Ready to run the numbers?

Calculate your exact payment at your target price.

Payment Calculator

How this works: Canadian lenders use two key ratios to determine how much you can borrow:

  • GDS (Gross Debt Service): Housing costs must be 39% or less of gross income
  • TDS (Total Debt Service): All debts must be 44% or less of gross income

Lenders also apply the stress test — qualifying you at the higher of your rate + 2% or 5.25%.

You Can Afford
$441,010
Calculate Payment