How much the stress test cuts your mortgage budget
The Canadian mortgage stress test makes lenders check you can afford payments at the greater of your contract rate plus 2 percentage points or 5.25%. At a 4.12% rate you qualify at 6.12%. It applies to insured and uninsured mortgages from federally regulated lenders.
Stress test impact calculator
The payment a federally regulated lender must test you at.
- Payment at your rate
- $2,663
- what you'd actually pay
- Payment you must qualify at
- $3,235
- $572 more per month
- Loan the same payment would qualify for
- $411,577
- $88,423 less than you asked for
- Income needed at 39% GDS (P&I only)
- $99,532
- before tax, heat and condo fees
Estimate, not advice. The stress test checks that you could still afford payments if rates rose. It does not change the rate you pay.
Qualifying rate 6.12%. Payment at qualifying rate $3,235 versus $2,663 at your rate.
Show the numbers
| Contract rate | Payment at contract rate | Payment at qualifying rate |
|---|---|---|
| 2.5% | $2K | $3K |
| 3.0% | $2K | $3K |
| 3.5% | $2K | $3K |
| 4.0% | $3K | $3K |
| 4.5% | $3K | $3K |
| 5.0% | $3K | $4K |
| 5.5% | $3K | $4K |
| 6.0% | $3K | $4K |
| 6.5% | $3K | $4K |
| 7.0% | $4K | $4K |
Assumptions & sources
Assumptions
- Qualifying rate = greater of contract rate + 2% or 5.25%, for insured and uninsured mortgages at federally regulated lenders.
- Since November 21, 2024, uninsured borrowers who switch lenders at renewal without borrowing more do not have to requalify (OSFI straight-switch exemption).
- Credit unions regulated by a province may apply different tests.
- Semi-annual compounding (Canadian fixed-rate convention).
Sources
- OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
- Department of Finance Canada — Statement on the insured mortgage stress test (effective December 12, 2023). Checked .
- OSFI — Straight-switch exemption and loan-to-income portfolio limits (effective November 21, 2024). Checked .
- CMHC — Calculating GDS / TDS. Checked .
- Justice Laws — Interest Act, R.S.C. 1985, c. I-15, s. 6. Checked .
How this calculator works
Enter the mortgage amount, your offered rate and amortization. The calculator applies OSFI's minimum qualifying rate (the same formula the federal government uses for insured mortgages) and compares the payment you'd actually make with the one you must qualify at.
The "loan the same payment would qualify for" figure shows the stress test's real cost: the payment you can carry at your rate supports a smaller mortgage at the qualifying rate. For a full budget, use the affordability calculator.
For a deeper look at the test itself (pass/fail at your numbers, GDS/TDS at the qualifying rate, the renewal switch exemption and co-signers), our sister site MortgageStressTestCalculator.ca covers it in full.
Frequently asked questions
What is the mortgage stress test rate right now?
It is the greater of your contract rate plus 2 percentage points or 5.25%. OSFI reviews the floor at least once a year; it was unchanged when we checked on November 1, 2026.
Does the stress test apply when I renew?
Not if you stay with your lender. Since November 21, 2024, uninsured borrowers who switch to another federally regulated lender at renewal, without borrowing more or extending the amortization, also don't have to requalify.
Does the stress test apply to credit unions?
Federally regulated lenders must apply it. Provincially regulated credit unions set their own policies, though many use a similar test, and every insured mortgage must meet the federal qualifying rate.
Do I pay the qualifying rate?
No. The qualifying rate is only used to test affordability. Your payments are based on your contract rate.
Primary sources
- OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
- Justice Laws — Insurable Housing Loan Regulations (SOR/2012-282): qualifying rate and GDS/TDS for CMHC-insured loans (effective February 27, 2025). Checked .
- Justice Laws — Eligible Mortgage Loan Regulations (SOR/2012-281): the same rules for privately insured loans (effective February 27, 2025). Checked .
- Department of Finance Canada — Statement on the insured mortgage stress test (effective December 12, 2023). Checked .
- OSFI — Straight-switch exemption and loan-to-income portfolio limits (effective November 21, 2024). Checked .
- CMHC — Calculating GDS / TDS. Checked .