Mortgage Stress Test
Calculator
Enter your mortgage and income. The calculator applies the qualifying rate and shows the payment lenders test you at, your debt ratios and the largest mortgage that fits your limits.
Your stress test
Based on the OSFI minimum qualifying rate. Lenders set their own income rules and ratio limits, so your result may differ. Not mortgage advice. Terms →
What the mortgage stress test is
Lenders regulated by the federal government have to check that you could still afford your mortgage if rates were higher. The Office of the Superintendent of Financial Institutions (OSFI) sets the rate used for uninsured mortgages as the greater of your contract rate plus 2 percentage points or 5.25%. Insured mortgages, which have less than 20% down, are tested at the same rate under the federal mortgage insurance rules.
The test only decides whether you qualify. You still pay your contract rate. OSFI reviews the floor and the buffer at least once a year, so the numbers can change.
For an uninsured straight switch at renewal, meaning you move to another federally regulated lender without raising the amount or lengthening the amortization, OSFI says it does not expect lenders to apply the test.
A worked example
Take a $500,000 mortgage at 4.59% over 25 years with semi-annual compounding. The contract rate plus 2 points is 6.59%, which is above the 5.25% floor, so 6.59% is the qualifying rate. The monthly payment at 4.59% is about $2,792. At 6.59% it is about $3,376, which is $584 a month more. That higher payment is the one lenders use when they work out your housing and debt ratios.
How the calculator works
It finds the qualifying rate, works out your monthly payment at that rate, and adds property tax, heating, half of any condo fees and your other debts. It then shows your gross debt service (GDS) and total debt service (TDS) ratios and compares them with the limits you enter. The largest mortgage figure is the amount whose payment at the qualifying rate fits inside both limits.
Lenders each set their own rules for which income counts, how heating and property tax are estimated and what limits apply. Treat the result as a rough guide, and ask a lender or mortgage broker for a pre-approval.
- OSFI: Minimum qualifying rate for uninsured mortgages (page modified January 29, 2026): the greater of the contract rate plus 2% or 5.25%, the straight switch statement and the annual review.
- Insured mortgages are tested at the same rate under the federal mortgage insurance rules. This is confirmed here by a secondary source (WealthNorth, October 2026), not directly by the Department of Finance page.
- The 39% and 44% limits are commonly used for insured mortgages but are set by each lender and insurer, so they are inputs you can change.
Frequently asked questions
What is the stress test rate in 2026?
For uninsured mortgages OSFI requires the greater of your contract rate plus 2% or 5.25%. OSFI reviews it at least once a year, so check its website for the current figure.
Does the stress test apply to a mortgage renewal?
OSFI says it does not expect lenders to apply it to an uninsured straight switch at renewal, where the amount and amortization stay the same. Borrowers who increase the amount, extend the amortization or are insured may be tested.
Does it apply to variable-rate mortgages?
Yes. The qualifying rate is based on your contract rate whether it is fixed or variable.
Do I pay the higher rate?
No. You pay your contract rate. The qualifying rate is only used to decide how much you can borrow.
What do GDS and TDS mean?
GDS is housing costs (mortgage payment, property tax, heating and half of condo fees) as a share of gross income. TDS adds your other debt payments. Lenders compare both with their limits.
Do credit unions have to use the same test?
OSFI regulates federally regulated lenders such as the large banks. Provincially regulated lenders are not directly bound by its guideline, but many use similar standards, so ask your lender.