Mortgage stress test calculator
You borrow at one rate and must qualify at a higher one — OSFI's rule: the greater of your contract rate plus 2%, or 5.25%. See your qualifying rate, the payment the bank tests you against, and the monthly gap between the mortgage you'd pay and the one you must prove.
Your mortgage
What this does and doesn't test
This shows the payment hurdle. Whether your income clears it is the lender's debt-service math (GDS/TDS ratios), which varies by lender and insurer — and is the wall retirement income often hits (see HELOCs in retirement). The stress-test guide covers the rule's history and edge cases.
Frequently asked questions
What is the mortgage stress test in Canada?
OSFI's minimum qualifying rate for uninsured mortgages at federally regulated lenders, stated on their page as “the greater of the mortgage contract rate plus 2% or 5.25%.” You don't pay the qualifying rate — you must prove your income could service the payment at it. On the default scenario above (a $500,000 mortgage at 4.85%), that means qualifying at 6.85% — a payment $590 a month higher than the one you'd actually make.
Does the stress test apply when I renew?
Staying with your current lender at renewal: no re-qualification. Moving lenders: since November 21, 2024, OSFI exempts uninsured “straight switches” — same loan amount, same amortization, lender to lender — from the minimum qualifying rate, ending the era when borrowers were trapped at renewal because they couldn’t re-pass the test for their own existing mortgage. Refinancing (more money or longer amortization) still triggers the full test.
Does the stress test apply to HELOCs and variable mortgages?
Yes to both at federally regulated lenders. FCAC states plainly that you “must also pass a ‘stress test’ to qualify for a HELOC at a bank” — a 5.45% line is income-qualified at ~7.45%, which is precisely the wall retirees hit (see HELOCs in retirement). Variable mortgages qualify at the same greater-of formula using the contract rate. Credit unions are provincially regulated and may apply different standards — one reason brokers shop them for edge cases.
How much does the stress test cut my maximum mortgage?
Roughly speaking, qualifying at rate + 2% instead of your actual rate trims maximum borrowing power by about 15–20% at current rates — the payment your income supports buys a smaller principal at the higher test rate. This calculator shows the per-payment gap for a mortgage size you choose; the income side (GDS/TDS service ratios) is lender math we deliberately don’t simulate, since debt-ratio policies vary by lender and insurer.
Can the qualifying rate change?
Yes — OSFI reviews it at least annually (December, historically) and can move the +2% buffer or the 5.25% floor. The floor only bites when rates are very low: at today’s ~4.85% contract rates, contract + 2% = 6.85% governs and the 5.25% floor is irrelevant. Our figures reflect OSFI’s page as of June 11, 2026; the stress-test guide carries the fuller history and rationale.
Educational tool, not financial advice. Qualifying rate per OSFI's minimum qualifying rate for uninsured mortgages, verified June 11, 2026 (reviewed by OSFI at least annually); payments use Canadian semi-annual compounding. Lender income tests (GDS/TDS) are not simulated. Credit unions are provincially regulated and may differ.