Stress Test Calculator

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.

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.

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.

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.