How the Canadian mortgage stress test works
The stress test checks whether the mortgage can be supported at a qualifying rate above the contract rate. For federally regulated lenders, the qualifying rate is generally the higher of 5.25% or the contract rate plus 2 percentage points. The calculator also estimates GDS and TDS so you can see how housing costs and other debt interact with gross household income.
Frequently asked questions
What is the mortgage stress-test rate in Canada?
For federally regulated lenders, the qualifying rate is generally the higher of 5.25% or the mortgage contract rate plus 2 percentage points.
What are GDS and TDS?
GDS compares qualifying housing costs with gross household income, while TDS also includes other debt obligations. Federal consumer guidance uses 39% GDS and 44% TDS as general reference ceilings.
Does passing these ratios guarantee mortgage approval?
No. This calculator is educational. Credit, income verification, property details, mortgage insurance, lender policies and other underwriting requirements can affect approval.