Stress test calculator
See how the qualifying rate compares to your contract terms under OSFI rules.
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Stress test qualifier
Compare contract payments to qualifying stress test payments using OSFI guidelines.
Calculation notes
Methodology for the stress test qualifier
Calculate your mortgage qualifying rate under the Minimum Qualifying Rate rules — the higher of 5.25% or your contract rate plus 2.00%.
See exactly how the stress test reduces your maximum mortgage amount compared to qualifying at your contract rate alone.
Compare qualifying power under current rules vs a hypothetical no-stress-test scenario to understand the true impact.
Determine whether improving income, reducing debt, or increasing down payment is most effective for your qualifying amount.
Inputs to check
- Contract rate and term
- Income and debts
- Amortization length
Assumptions
- Uses OSFI Guideline B-20 qualifying rules and the Bank of Canada conventional 5-year rate.
- Applies the higher of 5.25% or contract rate + 2.00% as the qualifying rate.
- Assumes standard GDS/TDS limits of 39%/44% — some lenders use different thresholds.
- Results are directional estimates; final qualifying amounts depend on full lender underwriting.
How this calculator works
Calculate your mortgage qualifying rate under the Minimum Qualifying Rate rules — the higher of 5.25% or your contract rate plus 2.00%.
See exactly how the stress test reduces your maximum mortgage amount compared to qualifying at your contract rate alone.
Compare qualifying power under current rules vs a hypothetical no-stress-test scenario to understand the true impact.
Determine whether improving income, reducing debt, or increasing down payment is most effective for your qualifying amount.
Inputs you will need
- Contract rate and term
- Income and debts
- Amortization length
Assumptions and limitations
- Uses OSFI Guideline B-20 qualifying rules and the Bank of Canada conventional 5-year rate.
- Applies the higher of 5.25% or contract rate + 2.00% as the qualifying rate.
- Assumes standard GDS/TDS limits of 39%/44% — some lenders use different thresholds.
- Results are directional estimates; final qualifying amounts depend on full lender underwriting.
Example scenarios
4.50% contract rate stress test
At 4.50% contract, stress test uses 6.50% (contract + 2.00%). On $140K income with 10% down, this reduces max mortgage by ~$80K — from ~$620K to $540K.
Low-rate environment impact
When contract rates are 3.00%, the 5.25% floor applies (3.00% + 2.00% = 5.00%, but floor is 5.25%). This creates a 2.25% qualifying gap — the largest relative impact.
Income increase scenario
Adding $20K in household income — from $120K to $140K — increases max purchase price by ~$75K-$85K under stress-test rules, all else equal.
Debt elimination payoff
Removing a $600/month car payment frees ~$108K in stress-tested purchasing power — often more impactful than a similar income increase.
Related tools
Turn this purchase result into a plan
Pair the calculator output with the right buyer guide, then pressure-test lender fit, down payment, and closing-day cash before you make an offer.
Guides
Read the Canada-specific playbook before you commit to the next step.
Execution
Use the broker workflow, rates pages, or secure dashboard to move from estimate to action.
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Frequently asked questions
Is the stress test required for renewals?
The stress test applies when switching lenders at renewal, increasing the loan amount, or refinancing. If you renew with your existing lender at same or lower balance, the stress test typically does not apply — this is why some borrowers stay with their current lender.
Does it apply to insured and uninsured mortgages differently?
For insured mortgages: higher of Bank of Canada conventional 5-year rate or contract + 2.00%, with 25-year amortization cap. For uninsured: same formula per OSFI B-20, but 30-year amortization allowed. In practice, qualifying rates are similar.
What if I have a variable-rate mortgage?
For variable rates, stress test uses higher of 5.25% or contract + 2.00%. Since variable rates are often lower than fixed, the 5.25% floor is commonly binding. The test ensures you can afford payments if rates rise — exactly the scenario variable-rate borrowers face.
Can I avoid the stress test?
For federally regulated lenders, the stress test is mandatory. Some provincially regulated credit unions and private lenders may have different rules, but their rates typically reflect the additional risk. Avoiding the stress test through an unregulated lender can expose you to payment shock if rates rise.
How is the stress test different from GDS/TDS?
The GDS/TDS test checks ratios at your contract rate. The stress test is an additional layer: checks whether you would still pass at a higher qualifying rate. You must pass BOTH. If either fails, your max mortgage is reduced. The calculator applies both simultaneously.