What is the mortgage stress test in Canada?

The stress test is a federal rule that requires lenders to qualify you at a higher 'qualifying rate' than your actual contract rate. The qualifying rate is the greater of 5.25% or your contract rate plus 2%. It proves you could still afford payments if rates rose.

What is the current mortgage stress test rate?

You must qualify at the higher of 5.25% (the minimum qualifying rate) or your contract rate plus 2 percentage points. For example, a 4.5% contract rate is stress-tested at 6.5%.

Does the stress test apply to mortgage renewals?

If you renew with your current lender, you generally do not need to re-pass the stress test. But if you switch lenders at renewal, the new lender will usually re-apply the stress test to your application.

Mortgage Stress Test Calculator

Canadian lenders must qualify you at a higher rate than you'll actually pay. See your qualifying rate, your stress-tested payment, and the household income you'd need to pass.

Your Mortgage

Enter your mortgage amount and the rate you've been offered

Mortgage Amount

Contract Interest Rate (%)

Amortization (years)

Monthly Property Tax

Monthly Heating

Your Stress Test

What lenders use to qualify you

Your qualifying rate

6.49%

Greater of 5.25% or your rate + 2%

Payment at your rate$2,776/mo

Stress-tested payment$3,373/mo

Extra you must prove$597/mo

Household income needed$119,167/yr

How the Canadian Mortgage Stress Test Works

Since 2018, federally regulated lenders must qualify every borrower at a qualifying rate — not the rate you'll actually pay. The qualifying rate is the greater of 5.25% or your contract rate plus two percentage points. This buffer proves you could still make your payments if interest rates climbed during your term.

Lenders then check that your stress-tested housing costs fit within two ratios: your Gross Debt Service (GDS) ratio — mortgage payment, property tax, and heat — should stay at or below roughly 39% of gross income, while your Total Debt Service (TDS) ratio, which adds all other debt payments, should stay at or below about 44%.

The income figure above is an estimate of what you'd need to pass the GDS test alone. If you carry car loans, credit card balances, or student debt, you'll need more income to satisfy the TDS limit too — use our affordability calculator to factor those in.

Related tools & guides

Affordability Calculator

Find your maximum purchase price using full GDS and TDS ratios.

Mortgage Calculator

Model your full payment schedule and download it as a PDF.

First-Time Buyer Guide

Programs and rebates that help you qualify and save on closing.

Canadian Bank Rates

Compare live fixed and variable rates from the major banks.

CMHC Insurance

See how mortgage default insurance affects what you can borrow.

Mortgage Glossary

Understand GDS, TDS, qualifying rate, and more.

Related guides

The Stress Test Explained

A plain-language walkthrough of the qualifying rate and the ratios lenders use.

Mortgage Pre-Approval

Lock a rate and confirm what you qualify for before you shop.

Fixed vs Variable Rates

See how your rate type affects your qualifying payment.

See What You Can Actually Afford

Run the full affordability check with your income, debts, and down payment.

Affordability Calculator Mortgage Calculator