Mortgage Stress Test Calculator
Check how much mortgage you qualify for under Canada's stress test and GDS/TDS debt-service limits.
About the Mortgage Stress Test Calculator
Canadian lenders must qualify borrowers at the higher of the contract rate plus 2% or 5.25% (OSFI's Guideline B-20 for uninsured mortgages, and the federal rule for insured ones). Insured mortgages (under 20% down) must also meet a gross debt service (GDS) ratio of 39% and total debt service (TDS) ratio of 44%; many lenders use similar limits for uninsured loans.
GDS counts mortgage payments, property tax, heating and half of condo fees; TDS adds other debt payments. Canadian fixed-rate mortgages compound semi-annually.
The formula
Qualifying rate = max(contract + 2%, 5.25%); GDS = housing costs ÷ income ≤ 39%; TDS = (housing + debts) ÷ income ≤ 44%
Worked example
Example: Maximum mortgage = $544,793
- Inputs: Gross household income (annual): $130,000; Contract mortgage rate: 5%; Amortization: 28 years; Down payment: $88,000; Property tax (monthly): $440; Heating (monthly): $110; Condo fees (monthly): $0; Other debt payments (monthly): $550.
- Formula: Qualifying rate = max(contract + 2%, 5.25%); GDS = housing costs ÷ income ≤ 39%; TDS = (housing + debts) ÷ income ≤ 44%
- Result: Maximum mortgage = $544,793
- Qualifying payment: $3,666.67
- GDS limit (39%): $4,225
- TDS limit (44%): $4,767
Questions people ask
Does the stress test apply to renewals?
Not when you renew with the same lender; since November 2024 it also doesn't apply to straight switches of insured mortgages.
Minimum down payment?
5% of the first $500,000 and 10% of the rest, up to $1.5 million; 20% above that.
Sources
The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.