Stress Test Calculator
See if you qualify under Canada's mortgage stress test rules.
Property & Mortgage
Illustrative default rate. Use the rate you were actually offered, or see today's rates.
Monthly Obligations
Income Needed to Qualify
$130,769/yr
Based on stress-tested payment at 6.79%
Payment Comparison
Qualification Details
Understanding This Calculation
• Uses the OSFI minimum qualifying rate: your rate + 2% (minimum 5.25%)
• With less than 20% down, the mortgage insurance premium is added to the loan you qualify for
• GDS limit: 39% | TDS limit: 44% (insured mortgages)
• Other debts lower the income you can qualify with
• Actual qualification depends on credit score, employment, and lender criteria
Understanding Canada's Mortgage Stress Test
Canada's mortgage stress test — applied to insured mortgages since 2016 and extended to uninsured mortgages by the Office of the Superintendent of Financial Institutions (OSFI) in 2018 — exists to ensure borrowers could handle potential interest rate increases. The rule requires federally regulated lenders to qualify borrowers at a rate higher than their actual mortgage rate — either the contract rate plus 2 percentage points, or a minimum qualifying rate floor of 5.25%, whichever is higher.
How the Stress Test Protects Borrowers
The stress test acts as a financial safety net. If your contract rate is 4.79%, the stress test qualifies you as if your rate were 6.79% (or 5.25%, whichever is higher). This means you must prove you can afford payments at 6.79% — even though you'll actually pay 4.79%. If rates rise during your term, you have built-in breathing room. Without this buffer, a 2% rate increase on a $700,000 mortgage would add over $800/month to your payment.
OSFI Rules and Recent Changes
Until late 2024, uninsured borrowers who wanted to switch lenders at renewal had to pass the stress test again, which gave existing lenders significant leverage at renewal time. Effective November 21, 2024, OSFI removed that requirement for straight switches — moving an uninsured mortgage to a new lender at renewal without increasing the loan amount or extending the amortization. Borrowers who add funds or extend their amortization are refinancing and must still qualify at the stress-test rate.
Tips to Pass the Stress Test
- Increase your down payment — A lower mortgage means a lower stress-tested payment and lower income requirement.
- Pay off debts before applying — Reducing car loans, credit card balances, and student loans lowers your TDS ratio.
- Consider a co-signer or co-borrower — Combining incomes can help meet qualification thresholds.
- Work with a mortgage broker — Brokers have access to 40+ lenders, some with more flexible qualifying criteria. Kraft Mortgages works with over 40 lending partners to find the right fit.
- Document all income sources — Bonus income, overtime, rental income, and investment income can all be used if properly documented.