Mortgage Stress Test Calculator Canada (2026) – OSFI MQR
At today's 4.59% 5-year fixed, the OSFI minimum qualifying rate is 6.59%. A $500K mortgage over 25 years is about $2,792/month at the contract rate and about $3,376/month at the qualifying rate, synced 2026-10-18.
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
Parameters
100,000
Combined household income before taxes
200
Cards
300
Car
Other
Total: $500/mo
50,000
Cash available for down payment
4.59
Today's 5-year fixed
30yr only for ≥20% down
150
Lenders typically use ~$150/mo
0
50% counted for qualification
Affordability Report
Stress Test6.59%
Maximum Purchase Price
$431,627
Based on $100,000 income
cmhc requiredMaximum Mortgage
$381,627
$50,000 down payment
Est. Monthly Payment
$2,197
At 4.59% contract rate
CMHC PremiumFinanced
$11,830
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 6.59% stress test rate
Monthly Housing Costs
Mortgage (P&I)$2,197
Property Taxes$360
Heating$150
Total Monthly Housing$2,707
At your max affordable price of $431,627
Run the renewal calculator
If this file is a renewal, price the balance you will owe at today's 5-year fixed.
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
Run the renewal calculator$431,627
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.
Verified 2026-09-14