Mortgage Stress Test Calculator: Will You Pass at the Qualifying Rate?
Canada's stress test checks your mortgage at a qualifying rate: the greater of your contract rate + 2 points or 5.25%. At the Bank of Canada's August 2026 average insured 5-year rate of 4.12%, that's 6.12%. Load your numbers to see if you pass, what the test costs you, and every honest way to pass.
Mitey re-reads OSFI's rule page before every update. The yellow band is the 2-point buffer you're tested on top of your rate.Stress test lab
Load your numbers, see the qualifying rate, and whether the price passes. Example values; replace them with yours. Nothing leaves your browser.
At your 4.12% contract rate the same ratios would allow $691,900. The test takes away $109,700 (16%).
- Mortgage
- $539,433
- insured, incl. $17,233 premium
- Payment you'd make
- $2,602
- monthly at 4.12%
- Payment the lender tests
- $3,249
- monthly at 6.12%
- Loan-to-income
- 4.69×
- OSFI watches lenders' share above 4.5×
With 30 years the most you pass at is $582,200; with 25 years it would be $550,300 ($31,900 less, but less interest over time).
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.
Qualifying rate 6.12%. Maximum price with the stress test $582,200.
What is driving this result
- The lender tests you at 6.12%: your 4.12% rate + 2 points. You would actually pay 4.12%, so the test assumes a payment $647 a month higher than your real one.
- At 6.12% the most you can put toward housing is $3,738 a month under the 39% GDS limit, and $3,767 after your other debts under the 44% TDS limit.
- Your GDS ratio (housing costs at the qualifying rate ÷ income) is what stops a higher price.
- Without the buffer, the same ratios would allow about $691,900. The stress test removes $109,700 (16%) of buying power.
Paths to pass at $630,000
Each lever is solved on its own, holding everything else at your inputs. Enter a price above to test your own target.
About $11,100 a year of co-signer income would pass, if they carry $0 a month of their own debts. Their debts count too, and they become fully liable. How co-signing works.
Even $0 of other debts doesn't pass: GDS or another rule is the limit, so paying debts off won't do it alone.
A down payment of $111,400 ($51,400 more) would pass.
You're already at 30 years.
A lower rate can't do it: at any rate below 3.25% the 5.25% floor sets the test.
Not an option with less than 20% down: insured mortgages use the federal test at every lender.
Show the numbers
| Qualifying rate | Maximum price |
|---|---|
| 3.00% | $772,400 |
| 3.25% | $753,200 |
| 3.50% | $734,800 |
| 3.75% | $717,000 |
| 4.00% | $699,900 |
| 4.25% | $683,400 |
| 4.50% | $667,600 |
| 4.75% | $652,300 |
| 5.00% | $637,600 |
| 5.25% | $623,400 |
| 5.50% | $609,800 |
| 5.75% | $600,000 |
| 6.00% | $588,100 |
| 6.25% | $575,800 |
| 6.50% | $564,000 |
| 6.75% | $552,600 |
| 7.00% | $541,500 |
| 7.25% | $530,900 |
| 7.50% | $520,700 |
| 7.75% | $510,800 |
| 8.00% | $501,200 |
| Contract rate ↓ / Income → | $85K | $100K | $115K | $130K | $145K | $160K |
|---|---|---|---|---|---|---|
| 3.12% | $459K | $546K | $623K | $700K | $776K | $850K |
| 3.62% | $445K | $528K | $603K | $677K | $751K | $824K |
| 4.12% | $427K | $507K | $582K (your inputs) | $648K | $719K | $789K |
| 4.62% | $410K | $486K | $558K | $622K | $689K | $756K |
| 5.12% | $396K | $467K | $536K | $600K | $661K | $725K |
| 5.62% | $381K | $450K | $516K | $578K | $635K | $696K |
Your saved scenarios
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Assumptions & sources
Assumptions
- Qualifying rate: the greater of the contract rate + 2 points or 5.25% (OSFI Guideline B-20 for uninsured loans at federally regulated lenders; federal mortgage-insurance rules for every insured loan). Same formula for fixed and variable rates.
- GDS = (principal and interest at the qualifying rate + property tax + heating + 50% of condo fees) ÷ gross monthly income. TDS adds your other monthly debt payments. Limits default to CMHC's 39% / 44%; uninsured lenders set their own.
- Less than 20% down: insured. Minimum down payment 5% of the first $500,000 and 10% above; insured price must be below $1,500,000; premium added to the loan by loan-to-value; 30-year insured amortization only for first-time buyers and new builds (+0.20 points on the premium).
- Fixed rates compound semi-annually (the Canadian convention). Property tax and heating are your estimates. Credit score, employment history, property type and the lender's own policies are not modelled.
- "Without the stress test" uses your contract rate in place of the qualifying rate and keeps every other rule.
Sources
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- Department of Finance Canada — Statement on the insured mortgage stress test (December 2023) (effective December 12, 2023). Checked .
- CMHC — Calculating GDS / TDS. Checked .
- CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .
- CMHC — Home Start: 30-year amortization for first-time buyers and new builds. Checked .
- Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
- OSFI — Loan-to-income limits for uninsured mortgage portfolios (effective January 29, 2026). Checked .
- Bank of Canada — Effective rate on new insured fixed mortgages, 5 years and over (series V122667780) (effective August 1, 2026). Checked .
- Bank of Canada — Effective rate on new uninsured fixed mortgages, 5 years and over (series V122667786) (effective August 1, 2026). Checked .
What rate are Canadians being stress tested at?
Most borrowers are tested at their rate plus 2 points: average contract rates are above 3.25%, so the 5.25% floor doesn't bite. These are the Bank of Canada's averages for new mortgages, and the qualifying rate each one implies.
| Mortgage type | Average contract rate | Month | Qualifying rate | Set by | Lowest published 5-year → tested at |
|---|---|---|---|---|---|
| Insured, 5-year+ fixed | 4.12% | August 2026 | 6.12% | rate + 2 | 4.34% → 6.34% (ATB Financial) |
| Uninsured, 5-year+ fixed | 4.58% | August 2026 | 6.58% | rate + 2 | 4.59% → 6.59% (ATB Financial) |
| Insured, variable | 3.74% | August 2026 | 5.74% | rate + 2 | 3.66% → 5.66% (nesto) |
| Uninsured, variable | 3.90% | August 2026 | 5.90% | rate + 2 | 3.89% → 5.89% (Meridian Credit Union) |
Averages, not offers: your own rate depends on the lender, term and your file. The last column is the lowest special rate we read on a lender's own rates page on November 2, 2026 (some lenders only lend in one province); it's a collected rate, not a quote. The Bank of Canada's posted 5-year rate (6.19%, week of October 28, 2026) is a list price and no longer part of the test. Is your offer a good rate?
Who has to pass the stress test, and who doesn't
Every insured mortgage and every new uninsured loan at a federally regulated lender is tested. Renewals are not, and since November 2024 neither are straight switches to a new lender.
| Situation | Stress tested? | Why |
|---|---|---|
| Buying with less than 20% down (insured), any lender | Yes | Federal insured-mortgage rule, at banks, credit unions and every other lender. |
| Buying with 20%+ down at a bank or other federally regulated lender | Yes | OSFI Guideline B-20. |
| Refinancing, adding a HELOC or borrowing more | Yes | A new or larger loan is underwritten again. |
| Renewing with your current lender | No | A renewal isn't a new loan. |
| Switching lenders at renewal, same amount and amortization | No (since late 2024) | OSFI exemption for uninsured switches between federally regulated lenders (Nov 21, 2024); Mortgage Charter and Dec 16, 2024 regulation for insured. Not at Quebec caisses. A lender can still choose to requalify you. |
| Uninsured loan at a provincially regulated credit union | Depends on the province | Provincial regulators set the rule; see our province table. |
| Private lender or mortgage investment corporation | Not B-20 | Not federally regulated; expect higher rates and fees. |
Stress test tools for the next question
The stress test, rule by rule
Each guide tests the rule against the calculator with worked numbers, and cites the regulator.
After the stress test
Passing the test is one limit. These MITEY network sites answer the questions that usually come next.
Stress test questions, answered
Frequently asked questions
What is the mortgage stress test rate in Canada right now?
The qualifying rate is the greater of your contract rate plus 2 percentage points or 5.25%. OSFI sets it for uninsured mortgages at federally regulated lenders and the federal government applies the same test to every insured mortgage (checked November 1, 2026). At the Bank of Canada's August 2026 average insured 5-year fixed rate of 4.12%, you'd be tested at 6.12%.
How do I know if I pass the stress test?
Work out your housing costs at the qualifying rate (mortgage payment, property tax, heating and half of any condo fees). They must be no more than 39% of gross monthly income (GDS), and no more than 44% once your other debt payments are added (TDS). Those are CMHC's limits for insured loans; lenders set their own for uninsured loans, often similar. The calculator above does this for any price.
Does the stress test apply when I renew?
Not if you renew with your current lender, and not if you switch to another federally regulated lender at renewal without borrowing more or extending the amortization (a straight switch): OSFI dropped the test for uninsured switches on November 21, 2024, and insured switches are covered by the federal Mortgage Charter. Adding money or years means you requalify. The exemption means regulators no longer expect the test; a lender can still choose to requalify you, so ask before you apply.
Does the stress test apply to credit unions?
Insured mortgages follow the federal test at every lender, credit unions included. For uninsured mortgages, provincially regulated credit unions follow their provincial regulator's rules rather than OSFI's B-20, and some qualify at a different rate. Our province page lists what each regulator says.
How much does the stress test reduce what I can borrow?
For the example household in the calculator ($115,000 income, $60,000 down, 4.12%), the test removes $109,700 of buying power, 16% of what the same ratios would allow at the contract rate. Adding 2 points to a 4.12% rate raises the tested payment by about 25%. The calculator shows your own figure.
Is 5.25% still the minimum qualifying rate?
Yes. 5.25% is the floor, and it only matters when your contract rate is below 3.25%. Above that, your rate plus 2 points is higher and sets the test.