Canada Mortgage Stress Test Calculator
Find your stress-test qualifying rate (the greater of your contract rate + 2% or 5.25%), the largest mortgage and home price you pass at with GDS 39% and TDS 44%, or test a specific home with CMHC insurance, condo fees and payment frequency.
How it works
qualifying rate = max(contract rate + 2%, 5.25%) · GDS = (mortgage payment + property tax + heat + ½ condo fees) ÷ gross monthly income ≤ 39% · TDS = GDS costs + other debt payments ≤ 44% · payment = P × i ÷ (1 − (1 + i)^−n) with i = (1 + rate ÷ 200)^(1/6) − 1 (semi-annual compounding) · insured loans add the CMHC premium (2.80%–4.00% of the loan) before the test
Every mortgage from a federally regulated Canadian lender — insured or not — must be affordable at a higher hypothetical rate: your contract rate plus two points, or 5.25%, whichever is greater. The lender works out the payment at that rate and checks two ratios against your gross income. Gross debt service (GDS) covers the mortgage payment, property tax, heating and half of any condo fees; total debt service (TDS) adds car loans, student loans, card minimums and other debts. CMHC and most lenders cap them at 39% and 44%. In "How much I qualify for" mode the calculator finds the largest payment both ratios allow and turns it into a maximum mortgage, then adds your down payment to find the highest home price that also meets the minimum down-payment rules. With less than 20% down the mortgage must be insured: the CMHC premium is added to the loan, prices must stay under $1.5 million, and amortization is capped at 25 years (30 for first-time buyers and new builds). In "Test a specific home" mode it checks one price and down payment and shows pass or fail, both ratios, the income you would need and the premium. Canadian fixed rates compound semi-annually, so the monthly rate is (1 + rate ÷ 200)^(1/6) − 1. The limits, floor and buffer are editable under More options.
Worked example
$140,000 of income at a 4.5% contract rate is tested at 6.5%. GDS allows 39% × $11,667 = $4,550 a month of housing costs; after $400 of property tax and $150 of heat, a $4,000 payment is left. TDS allows $5,133 − $550 − $500 of debts = $4,083, so GDS binds. $4,000 a month at 6.5% over 25 years supports a mortgage of about $597,000, whose real payment at 4.5% is about $3,305. With $150,000 down the highest price is about $747,000 — just under 80% loan-to-value, so no CMHC premium.
Sources: OSFI — Minimum qualifying rate for uninsured mortgages · CMHC — Mortgage loan insurance premiums · Financial Consumer Agency of Canada — Mortgage stress test
Frequently asked questions
What is the stress test rate in 2026?
It is the greater of your contract rate plus 2% or the 5.25% floor. OSFI reviews the floor and buffer at least once a year and has kept them unchanged since June 2021. With a 4.5% offer you qualify at 6.5%; with a 3% offer, at 5.25%.
Does the stress test apply with 20% down?
Yes. Uninsured mortgages (20% or more down) at banks and other federally regulated lenders must pass the OSFI test too. Some provincially regulated credit unions and private lenders do not apply it, usually at higher rates.
Do I have to pass the stress test again at renewal?
Not if you stay with your lender. Since November 2024 an uninsured borrower who switches to another lender at renewal is also exempt, as long as the loan amount and amortization stay the same. Refinancing or borrowing more triggers a new test.
Are condo fees and heating included?
Yes. Lenders add heating (often an estimate of about $100–$175 a month) and 50% of condo fees to the housing costs in both GDS and TDS.
Does a bigger down payment help?
It doesn’t change the ratios, but it shrinks the mortgage you need, so the same income supports a higher price. Reaching 20% also removes the CMHC premium, which otherwise adds 2.80%–4.00% to the loan.
How is the CMHC premium included?
The premium is a percentage of the loan based on your loan-to-value ratio (4.00% with 5%–9.99% down, 3.10% with 10%–14.99%, 2.80% with 15%–19.99%), plus 0.20% for a 30-year amortization. It is added to the mortgage, so the payment the lender tests includes it. Ontario, Quebec and Saskatchewan charge sales tax on the premium, payable at closing.
Related calculators
Uses 2026 OSFI and CMHC rules (5.25% floor, 2% buffer, GDS 39% / TDS 44%, CMHC premiums). Lenders apply their own credit and income policies — confirm with your lender or mortgage broker. Educational estimate, not financial advice.