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Mortgage Stress Test Calculator Canada 2026

Find your maximum qualifying mortgage under OSFI B-20. Enter your income, rate, and debts — we calculate GDS, TDS ratios, and your maximum purchase price.

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Qualifying Rate: max(4.29% + 2%, 5.25%) = 6.29% — this is the rate used to qualify, not your actual payment rate.
🏦 Stress Test Results
Contract Rate
Qualifying Rate (Stress Test)
Maximum Qualifying Mortgage
Maximum Purchase Price
Actual Monthly Payment (at contract rate)
Stress Test Payment (at qualifying rate)
Debt Ratio Check
GDS Ratio (max 39%)
TDS Ratio (max 44%)
⚠️ Results are estimates based on standard GDS/TDS limits. Actual qualifying amounts depend on your lender, credit score, and income documentation. OSFI B-20 rules confirmed unchanged January 2026.
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How the 2026 Mortgage Stress Test Works

The Canadian mortgage stress test requires all federally regulated lenders (banks) to qualify you at a rate higher than the one you’ll actually pay. The qualifying rate is: max(contract rate + 2%, 5.25%). If your bank offers 4.29%, your qualifying rate is 6.29% — your maximum mortgage is based on what you could afford at that higher rate.

The GDS ratio (Gross Debt Service) caps monthly housing costs — mortgage payment at the qualifying rate, property tax, heat, and 50% of condo fees — at 39% of gross monthly income. The TDS ratio (Total Debt Service) adds all other debt payments and caps the total at 44%. Whichever limit is more restrictive determines your maximum mortgage.

What changed in 2024–2026?

Two recent changes expanded access: (1) as of August 2024, insured first-time buyers can use 30-year amortization for new construction; (2) as of November 2024, existing borrowers switching lenders at renewal no longer face the stress test if the loan amount and amortization stay the same. The qualifying rate itself remains unchanged per OSFI January 2026.

Do credit unions use the stress test?

Provincially regulated credit unions are not subject to OSFI’s B-20 guideline and may qualify you at more flexible rates — sometimes just the contract rate. If you’re having difficulty qualifying at a bank, explore credit unions or work with a mortgage broker who has access to both regulated and alternative lenders.

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Understanding the Canadian Mortgage Stress Test (OSFI B-20)

The mortgage stress test is a federal rule requiring all mortgage applicants — insured and uninsured — to qualify at a rate higher than their actual contract rate. This ensures borrowers can still afford payments if interest rates rise. It was introduced to prevent over-leveraging in Canada's housing market.

What qualifying rate is used?

You must qualify at the higher of: your contract rate plus 2%, or the Bank of Canada's minimum qualifying rate (currently 5.25%). In a typical 2026 environment where contract rates are around 4.29–5.5%, the stress test rate is usually the contract rate + 2% — often 6.29–7.5%. This calculator applies the correct rule automatically.

What are GDS and TDS ratios?

The Gross Debt Service (GDS) ratio is housing costs (mortgage payment + property tax + heating + 50% of condo fees) divided by gross income. Lenders want this at or below 39%. The Total Debt Service (TDS) ratio adds all other debt payments and should stay below 44%. Both are calculated here using the stress test qualifying rate, not your actual contract rate.

Does the stress test apply to renewals?

As of November 2024, the stress test no longer applies to uninsured mortgage renewals when switching lenders at the same or shorter amortization. This gives borrowers more freedom to shop for better renewal rates. New purchases and refinances still require full stress test qualification.