Calculator · Stress Test
What does the Canadian stress test do to your payment?
Federally regulated lenders qualify you at the greater of your contract rate +2% or 5.25%. Here's the payment a lender will actually use to size your file.
Live math · no calculate button| Canadian semi-annual compounding · OSFI B-20| Ontario + Toronto LTT-aware| Same engine our advisors use
Your inputs
$620k
4.39%
25 yrs
Qualifying rate
6.39%
vs. 4.39% contract rate
The math
Payment at contract rate$3,394
Payment at qualifying rate$4,112
Monthly difference$718
Take it with you
Download a neat PDF report with your numbers.
Lender-ready summary, your assumptions baked in, and a personalized note from a advisor at Mortgage Squad Advisors.
Methodology · Canadian-correct
The stress test applies to insured AND uninsured mortgages at federally regulated lenders. Some provincial credit unions and B-lenders qualify on contract rate; we shop both paths.
Mortgage glossary— terms that matter for this calculator
What is the Canadian mortgage stress test?
OSFI Guideline B-20 requires every federally regulated lender in Canada to qualify a borrower at the <strong>greater of contract rate + 2% or 5.25%</strong>. So a 4.39% offered rate qualifies at 6.39%. The qualifying rate doesn't change your payment — it determines how much mortgage you can carry.
Who is exempt from the stress test?
Provincial credit unions (Meridian, Vancity, FirstOntario, etc.) are not federally regulated. Many qualify at contract rate. Some specialty lenders and certain straight-transfer mortgage products also skip re-qualification. We route you to those lenders when your file is at the edge of affordability.
Does the stress test apply at renewal?
If you <strong>stay with your current lender</strong> at offered renewal: generally no re-qualification, even if your financial situation has worsened. If you <strong>switch lenders</strong> (transfer): the new lender re-qualifies you under B-20. Certain straight transfers skip this — we tell you which.
What's GDS and TDS?
GDS (Gross Debt Service ratio) = housing costs ÷ gross income, max 39%. TDS (Total Debt Service) = housing + all other debts ÷ gross income, max 44%. Both are computed using the qualifying rate, not the contract rate. The lower one between GDS and TDS becomes your binding constraint.
Can I improve my stress-tested affordability?
Three levers: (1) increase qualifying income via add-backs, dividend gross-ups, or rental offset; (2) reduce other monthly debt (pay down credit cards, refinance a car loan); (3) increase down payment to lower the mortgage size. The right play depends on your file.
Related calculators