Canada's OSFI stress test requires lenders to qualify you at the higher of your contract rate + 2%, or 5.25%. This calculator shows you the minimum income you need to qualify for your desired mortgage, your GDS and TDS ratios, and whether you pass.
Canadian lenders must qualify you at the stress test rate — the higher of your contract rate + 2%, or 5.25%. This is how much you actually need to earn to qualify.
Enter the contract rate your lender is offering, your desired mortgage amount, your amortization period, your monthly debt payments (car payments, credit card minimums, student loan payments), your estimated annual property tax, and your monthly condo fees if applicable.
The calculator immediately shows your stress test rate, the minimum income required, and your GDS/TDS ratios.
The Stress Test Rate is the rate lenders must use to qualify you — always the higher of contract rate + 2% or 5.25%. If your contract rate is 4.19%, your qualifying rate is 6.19%. This means the lender calculates your GDS and TDS ratios as if you were paying 6.19% interest, not 4.19%.
The Minimum Annual Income Needed is what you (or you and a co-borrower combined) must earn to pass the stress test for your desired mortgage. If your actual income is below this number, you'll need to reduce the mortgage amount, increase your down payment, or add a co-borrower.
The GDS and TDS ratios tell you how close you are to the regulatory limits. GDS must stay at or below 39% for insured mortgages; TDS at or below 44%. If either ratio exceeds the limit at the qualifying rate, a federally regulated lender cannot approve the mortgage. Credit unions and some alternative lenders have different thresholds and may still have options available.
The stress test qualifying rate is the higher of your contracted mortgage rate plus 2%, or 5.25% (the OSFI floor). If your rate is 4.19%, your qualifying rate is 6.19% (4.19% + 2%). If your rate is 3.00%, the floor of 5.25% applies.
If you're renewing with your existing lender, no stress test is required. However, if you switch lenders at renewal, the new lender must apply the stress test. This can limit your ability to shop around if your financial situation has changed.
Yes — the stress test applies to all federally regulated lenders (banks). Some credit unions and private lenders are not federally regulated and may not apply the stress test, though they often have other qualification criteria.
Increase your down payment to reduce the required mortgage amount, add a co-borrower to combine incomes, reduce existing debts before applying, or consider a lower-priced property. Each option improves your GDS/TDS ratios at the qualifying rate.
Explore current rates from 16+ Canadian lenders, or read our guides to understand your options.