Mortgage Stress Test Calculator Canada 2025

See your stress test qualifying rate and maximum mortgage in seconds.

Stress Test Calculator

Your Stress Test Results

Your contract rate
Stress test qualifying rate
Monthly income
Max monthly mortgage payment (GDS)
Estimated max mortgage

This calculator uses the federal stress test formula: your qualifying rate is the higher of your contract rate + 2%, or 5.25%. It then calculates the maximum mortgage you can carry while keeping your GDS ratio at or below 39% and TDS at or below 44%.

How the Stress Test Calculator Works

The calculator applies the 2025 stress test rules step by step:

  1. Determine qualifying rate: Take your offered rate and add 2%. Compare to the 5.25% floor. Use whichever is higher.
  2. Calculate GDS limit: 39% of gross monthly income, minus estimated taxes and heating.
  3. Calculate TDS limit: 44% of gross monthly income, minus taxes, heating, and all other debts.
  4. Use the lower of GDS or TDS: That's your maximum allowable mortgage payment at the qualifying rate.
  5. Back-calculate the loan: Using the amortization and qualifying rate to find the mortgage principal.
Important: This is an estimate. Actual lender calculations may vary based on property taxes, condo fees, heating assumptions, and other factors. Always confirm with your lender or mortgage broker.

Stress Test Qualifying Rate Examples (2025)

Contract Rate+2%Floor (5.25%)Qualifying Rate
3.00%5.00%5.25%5.25%
3.50%5.50%5.25%5.50%
4.00%6.00%5.25%6.00%
4.50%6.50%5.25%6.50%
5.00%7.00%5.25%7.00%

How to Increase Your Borrowing Power

Stress Test for Renewals

If you renew with your current lender, no stress test is required. But if you switch lenders at renewal — even to get a better rate — you must pass the stress test at the new lender. This can make it harder to shop around, though the savings can still be worth it if rates differ significantly.

Insured vs. Uninsured Mortgages

The stress test applies to both insured (CMHC-backed) and uninsured (20%+ down payment) mortgages. However, the debt ratio limits differ slightly: insured mortgages allow GDS up to 39% and TDS up to 44%, while conventional uninsured mortgages typically cap at GDS 35% and TDS 42%.

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Frequently Asked Questions

Is the 5.25% floor still in effect for 2025?

Yes. As of early 2025, the minimum qualifying rate floor remains at 5.25%. OSFI reviews this periodically, but no changes have been announced for 2025.

Does the stress test apply to variable rate mortgages?

Yes. For variable rate mortgages, you still qualify at contract rate + 2% or 5.25%, whichever is higher — even though your actual payments will be lower initially.

My bank pre-approved me — does that include the stress test?

A legitimate pre-approval from a federally regulated lender already factors in the stress test. If your pre-approval letter comes from a bank or major lender, the qualifying rate has already been applied.