Mortgage Stress Test Calculator
Calculate your qualifying rate under the Canadian mortgage stress test and see your maximum mortgage.
Mortgage Stress Test Calculator
B-20 qualifying rate: 6.50%
Max Home Price (Stress Tested)
$600,132
at 6.50% qualifying rate
Without Stress Test
$705,269
at 4.5% actual rate
The stress test reduces your buying power by $105,137 (14.9%)
* Qualifying rate = max(contract rate + 2%, 5.25%). GDS ≤ 39%, TDS ≤ 44%.
What is the Mortgage Stress Test?
The mortgage stress test (B-20 guideline) requires all Canadian borrowers to qualify at the higher of: (a) their contract rate + 2%, or (b) 5.25%. This ensures buyers can still afford payments if interest rates rise. The stress test was introduced in 2018 and updated in 2021.
How the Stress Test Affects Buying Power
The stress test reduces the maximum mortgage you qualify for. For example, if rates are 4.5%, you must qualify at 6.5%. A household earning $120,000 could qualify for ~$550,000 at 4.5% but only ~$490,000 when stress tested at 6.5%.
| Contract Rate | Qualifying Rate | Impact on Buying Power |
|---|---|---|
| 4.00% | 6.00% | ~12% reduction vs. non-stress-tested |
| 4.50% | 6.50% | ~12% reduction |
| 5.00% | 7.00% | ~12% reduction |
| 5.25% | 7.25% | ~12% reduction |
Frequently Asked Questions
Does the stress test apply to renewals?
As of November 2024, uninsured mortgage renewals with the same lender do not require the stress test. However, switching lenders at renewal does require the stress test.
What is the stress test rate in 2026?
The qualifying rate floor is 5.25%. If your actual contract rate + 2% is higher than 5.25%, you use your contract rate + 2% as the qualifying rate.
Can I avoid the mortgage stress test?
Private lenders (non-federally regulated) are not required to apply the stress test. Credit unions may have flexibility. However, using a private lender typically means higher interest rates.