Check if you qualify for a mortgage under Canada's stress test rules with GDS and TDS ratio calculations.
Enter values and click Calculate to see results.
Check if you qualify for a mortgage under Canada's stress test rules with GDS and TDS ratio calculations.
Understand the Canada mortgage stress test, including GDS/TDS ratios, qualifying rates, down payment rules, CMHC insurance, and B-20 guidelines. Use our free calculator to see how much you can afford.
Read full articleThe Canada Mortgage Stress Test Calculator uses the following formula:
The calculation is performed automatically when you click the Calculate button, ensuring error-free results every time. Understanding the formula helps you interpret the results more effectively and see exactly how each input affects the final outcome.
Follow these steps to use the Canada Mortgage Stress Test Calculator:
Enter the property price ($) in the provided input field (e.g., 600000).
Enter the down payment (%) in the provided input field (e.g., 10).
Enter the annual household income ($) in the provided input field (e.g., 100000).
Enter the monthly debt payments ($) in the provided input field (e.g., 500).
Enter the annual property tax rate (%) in the provided input field (e.g., 1.0).
Enter the monthly heating costs ($) in the provided input field (e.g., 150).
Enter the mortgage interest rate (%) in the provided input field (e.g., 5.0).
Enter the amortization period (years) in the provided input field (e.g., 25).
Click the "Calculate" button to compute your results.
Review the detailed results, including charts and breakdowns.
Use the "Reset" button to clear all fields and start a new calculation.
Try the "Load Example" button to see a sample calculation with predefined values.
Here is a practical example to help you understand how the Canada Mortgage Stress Test Calculator works.
Enter these values into the calculator (or click “Load Example Values”) to see how the formula produces accurate results.
When using the Canada Mortgage Stress Test Calculator, be aware of these common mistakes:
Taking a moment to verify your inputs will ensure the most accurate results.
For the best results when using the Canada Mortgage Stress Test Calculator, follow these expert tips:
The mortgage stress test requires borrowers to qualify at the greater of the Bank of Canada's 5-year benchmark rate (currently 5.25%) or their contract rate plus 2%. It ensures you can still afford payments if rates rise.
GDS (Gross Debt Service) ratio is housing costs (mortgage payment + property tax + heating) divided by gross income. TDS (Total Debt Service) ratio includes all debt payments. Maximums are 39% and 44% respectively under B-20 guidelines.
For homes under $500,000, minimum down payment is 5%. For homes $500,000-$999,999, it's 5% on the first $500K and 10% over $500K. For homes $1M+, minimum down payment is 20%.
CMHC insurance protects lenders against default and is required when the down payment is less than 20%. Premiums range from 2.8% to 4.0% of the mortgage amount and are added to the mortgage.
The minimum qualifying rate for the stress test is 5.25% (the Bank of Canada floor) or your contract rate plus 2%, whichever is higher. As of 2025-2026, most borrowers qualify at contract rate + 2%.
The stress test reduces your borrowing power by roughly 20-25% compared to qualifying at the contract rate. You may qualify for a smaller mortgage than the monthly payment on your desired home suggests.
No, the stress test applies to all federally regulated lenders. However, first-time buyers can use the Home Buyers' Plan (withdraw up to $60,000 from RRSP) and may qualify for first-time home buyer incentives.
As of 2025, the stress test does not apply to straight renewals with the same lender where there is no increase in the mortgage amount. It applies to new mortgages and switches to new lenders.