Skip to main content
Mortgage Squad Advisors
Qualification

Stress test

The mandatory check that you'd still qualify if rates rose to a higher "qualifying rate." Set by OSFI as greater of your contract rate + 2% or 5.25%. Limits how much you can borrow.

Related on Mortgage Squad Advisors

See also

Qualifying rateB-20GDSTDS

More on Qualification

All terms →

Co-signer

A creditworthy individual (often a parent) who agrees to be equally liable for the mortgage so the primary applicant qualifies. The co-signer's income is added to the application; their credit is fully exposed.

Credit score

A 300–900 score from Equifax or TransUnion summarizing your credit history. 680+ unlocks most A-lender rates. 600-680 typically routes to alt or B lenders.

Debt service ratio

The percentage of your gross income that goes to housing (GDS) or all monthly debt obligations (TDS). OSFI's stress test caps GDS at 39% and TDS at 44% on insured files.

Down payment

The cash you put toward the purchase. Minimums: 5% on the first $500K, 10% on $500K–$1M, 20% above $1M. Below 20% requires CMHC, Sagen, or Canada Guaranty insurance.

GDS

Gross Debt Service ratio

Your housing costs (mortgage payment + property tax + heating + 50% of condo fees) as a percentage of gross income. Most lenders cap GDS at 39% on insured files, 44%+ at alt lenders.

Qualifying rate

The stress-test rate you must qualify at: the greater of your contract rate plus 2% or 5.25%. Doesn't change what you actually pay — only whether you qualify.

Meet Maya

Canada’s 24/7 AI mortgage advisor.

Have a question right now? Maya answers instantly — in 50+ languages. Real humans on every file. Best-rate guarantee, or we pay you $500.

  • Instant answers
  • 50+ languages
  • Live math
  • Voice calls
Chat with Maya Call live Book a meeting with an advisor
M
Maya · AI advisor
Typing…