About the Canada Mortgage Stress Test Calculator
This mortgage stress test calculator shows how much you can borrow in Canada once the federal stress test is applied. Lenders must check that you could afford your payments at a qualifying rate that is the higher of 5.25% or the rate you negotiate plus 2 percentage points. The calculator finds that qualifying rate, then works out the largest mortgage whose payment at that rate keeps your debt service ratios within the limits.
Two ratios are tested. Gross debt service (GDS) — mortgage payment, property tax, heating and half of any condo fees — should not exceed 39% of gross household income. Total debt service (TDS) — housing costs plus car loans, credit card and other debt payments — should not exceed 44%. Whichever ratio is tighter sets your maximum mortgage, and the calculator tells you which one is limiting you.
It also estimates the highest purchase price your down payment supports under the minimum down payment rules, and the payment you would actually make at your contract rate. Payments use Canadian semi-annual compounding. These are the limits for insured mortgages; lenders can be stricter for uninsured loans, and the CMHC premium added to an insured mortgage is not included in the maximum shown.
With the default inputs, the maximum mortgage (stress tested) is $492,666.89. Change any value above to recalculate instantly.
How to use the canada mortgage stress test calculator
- 1Enter your gross household income and the rate you have been offered.
- 2Choose the amortization and enter your down payment.
- 3Add monthly property tax, heating, condo fees and other debt payments.
- 4Keep 39% GDS and 44% TDS unless your lender uses different limits.
- 5Read your qualifying rate, maximum mortgage and maximum price.
Formula and method
The qualifying rate is whichever is higher: the 5.25% floor or your contract rate plus 2 percentage points. The maximum principal-and-interest payment P is the smaller of the GDS room (39% of gross monthly income minus property tax, heating and half of condo fees) and the TDS room (44% of income minus those housing costs and your other debt payments).
That payment is converted to a mortgage amount using the present value of an annuity at the qualifying rate, with the Canadian semi-annual compounding convention: j = (1 + qualifying rate ÷ 2)^(1/6) − 1 per month. The maximum price adds your down payment, capped where the federal minimum down payment (5% of the first $500,000, 10% of the rest up to $1.5 million, 20% at $1.5 million or more) would be breached.
- I
- Gross monthly household income
- H
- Property tax + heating + 50% of condo fees (monthly)
- D
- Other monthly debt payments
- j
- Monthly rate at the qualifying rate (semi-annual compounding)
- n
- Amortization in months
Worked examples
$120,000 income at a 4.5% rate
The qualifying rate is 4.5% + 2% = 6.5%. GDS room is $3,900 − $500 = $3,400, but TDS room is $4,400 − $500 − $600 = $3,300, so TDS binds. A $3,300 payment at 6.5% over 25 years supports about $492,700, which would cost about $2,727 a month at the real 4.5% rate. Adding the $100,000 down payment gives a maximum price near $592,700.
Low contract rate hits the 5.25% floor
At 2.99% + 2% = 4.99%, the floor of 5.25% applies instead. With no other debts GDS binds: 39% of $7,916.67 is $3,087.50, minus $500 of tax and heat leaves $2,587.50, which supports about $434,200 at 5.25% over 25 years — at the real 2.99% rate the payment would be only $2,052.62.
Couple on $180,000 with a condo and a car loan, 30 years
Half the $600 condo fee counts, so housing extras are $750. GDS allows $5,850 − $750 = $5,100 and TDS allows $6,600 − $750 − $800 = $5,050, so TDS is tighter. At 6.1% over 30 years $5,050 a month supports roughly $840,100, and with $150,000 down (well above the roughly $74,000 minimum on a $990,000 home) the maximum price is about $990,100.
Frequently asked questions
What is the mortgage stress test rate in Canada?+
Lenders must qualify you at the higher of 5.25% or your contract mortgage rate plus 2 percentage points. If you are offered 4.5%, you must show you could afford the payments at 6.5%.
What are the GDS and TDS limits?+
For insured mortgages, housing costs (payment, property tax, heating and half of condo fees) should be no more than 39% of gross income, and all debt payments no more than 44%. Some lenders use lower limits for uninsured mortgages or weaker credit.
Does the stress test apply to uninsured mortgages?+
Yes. OSFI’s B-20 guideline requires federally regulated lenders to qualify uninsured mortgages at the greater of the contract rate plus a buffer or a floor rate, currently 2% and 5.25%. Since late 2024 it no longer applies when you simply switch lenders at renewal without borrowing more.
How can I pass the mortgage stress test?+
Pay down car loans or credit cards to free up TDS room, add a co-borrower’s income, choose a longer amortization if eligible, buy a home with lower property tax or condo fees, or increase your down payment so you need a smaller mortgage.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.