Canadian Mortgage Affordability & Stress Test Calculator
Calculates the maximum home purchase price you can afford, integrating the OSFI Canadian Mortgage Stress Test.
Max Pre-Approval Price
Applying OSFI 6.50% qualifying rate
Max Loan
$0
Allowable Payment
$0
Qualifying Ratios
*Calculations use semi-annual mortgage compounding over a 25-yr amortization.
How the Mortgage Stress Test Works (2026)
To get a mortgage from a federally regulated lender (all the big banks), you must show you could afford payments at a higher qualifying rate. In 2026 that rate is the greater of 5.25% or your contract rate plus 2%. It applies to both insured mortgages (under 20% down) and uninsured mortgages.
Lenders then check two ratios at the qualifying rate. Your GDS (mortgage payment, property tax, heating and half of condo fees) should stay under 39% of gross income. Your TDS (GDS plus all other debt payments) should stay under 44%. These are the CMHC limits for insured mortgages; lenders may apply their own limits to uninsured ones.
Worked Example
| Contract rate | Qualifying rate | |
|---|---|---|
| Rate | 4.50% | 6.50% |
| Monthly payment on $500,000 (25-year amortization) | $2,767 | $3,349 |
You would pay about $2,767 a month, but you must qualify as if you pay $3,349. That roughly $580 gap is why the stress test lowers the maximum mortgage you can get.
Ways to Pass the Stress Test
- Pay down credit cards, car loans and lines of credit to lower your TDS ratio.
- Save a larger down payment, or use your FHSA and the RRSP Home Buyers’ Plan.
- Add a co-borrower to count more household income.
- Choose a longer amortization if you qualify, which lowers the monthly payment.
- At renewal, switching lenders without increasing your uninsured mortgage no longer requires re-qualifying (since November 2024).
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Frequently Asked Questions
What is the mortgage stress test rate in 2026?
The greater of 5.25% or your contract rate plus 2%. If your lender offers 4.5%, you must qualify at 6.5%.
Does the stress test apply to uninsured mortgages?
Yes. Federally regulated lenders apply it to both insured mortgages (under 20% down) and uninsured mortgages (20% or more down).
What are the GDS and TDS limits?
For insured mortgages, CMHC limits GDS to 39% and TDS to 44% of gross income, calculated at the qualifying rate. Lenders can set their own limits for uninsured mortgages.
Do I have to pass the stress test when I renew?
Not if you stay with your lender. Since November 21, 2024, switching an uninsured mortgage to a new lender at renewal without increasing the amount or amortization is also exempt.
Do credit unions use the stress test?
Provincially regulated credit unions are not bound by the federal rule, but many apply a similar test.
Rules as of September 2026. Source: OSFI — Minimum qualifying rate for mortgages. This tool gives estimates, not tax advice.
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