Canada Mortgage Stress Test Calculator
Calculate your maximum mortgage under Canada OSFI stress test rules. This tool applies the higher of your contract rate plus 2% or the 5.25% floor to determine your qualifying amount based on GDS and TDS ratios.
Regional Rule Context
Canada Rates and Rules
Enter Values
Combined pre-tax income of all applicants
Total down payment saved
Your quoted or expected contract rate
30-year amortization requires 20% down payment
Result
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Canadian mortgage stress test calculator for 2026. OSFI requires lenders to qualify borrowers at the higher of the contracted mortgage rate plus 2% or the benchmark rate of 5.25%. Maximum gross debt service (GDS) ratio is 39% and total debt service (TDS) ratio is 44%. Down payments under 20% require CMHC mortgage default insurance (premiums from 2.8% to 4% of the loan). Maximum amortization is 25 years for insured mortgages and up to 30 years for uninsured.
Disclaimer: This calculator uses publicly available rules effective as of Jan 1, 2025 (version 1.0). Results are for informational purposes only. Always verify with official sources or a qualified professional. Last reviewed: Mar 1, 2026.
Formula
OSFI requires all borrowers to qualify at the stress test rate (contract + 2% or 5.25% floor). The Gross Debt Service ratio must stay under 39% and Total Debt Service under 44%. If your down payment is less than 20%, CMHC mortgage insurance is mandatory.
Canada FAQs
What is the mortgage stress test?
The stress test requires that you qualify for your mortgage at a rate higher than what you will actually pay. You must pass at the greater of your contracted rate plus 2% or the benchmark rate of 5.25%. This ensures you can handle payments if rates rise.
What are the GDS and TDS ratios?
Gross Debt Service (GDS) ratio is your housing costs (mortgage, taxes, heat, condo fees) divided by gross income, maximum 39%. Total Debt Service (TDS) adds all other debt payments (car loans, credit cards, student loans) and must not exceed 44%.
How much do I need for a down payment?
Minimum 5% on the first $500,000 of purchase price and 10% on the portion above $500,000. Properties over $1,000,000 require 20% minimum. For example, a $700,000 home needs $45,000 down (5% of $500K plus 10% of $200K).
What is CMHC mortgage insurance?
Mortgage default insurance is required when your down payment is less than 20%. Premium rates: 4% for 5-9.99% down, 3.1% for 10-14.99%, and 2.8% for 15-19.99%. The premium is added to your mortgage balance. On a $500,000 home with 10% down, insurance is approximately $13,950.
Does the stress test apply to renewals?
The stress test applies when switching lenders at renewal but not when renewing with your current lender. This means some borrowers may not qualify to switch to a better rate at renewal, reducing competition. Insured mortgages are exempt from the stress test at renewal with any lender.
Can I get a 30-year amortization?
Insured mortgages (down payment under 20%) are limited to 25-year amortization. Uninsured mortgages (20%+ down payment) can qualify for 30-year amortization with some lenders. First-time buyers purchasing new builds may qualify for 30-year insured amortization under recent program changes.
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