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Stress Test Calculator

Free Canadian stress test calculator for 2026 — compare contract rate vs qualifying rate (contract +2% or 5.25%), GDS/TDS ratios, and max affordable price. OSFI B-20 compliant.

Heating defaults $120. TDS adds other debts. GDS = (mortgage + tax + heat + 50% condo) ÷ gross monthly income.

Qualifying rate 6.69%✓ Pass at stress test

Payment at contract rate

$2,512

Payment at qualifying rate

$3,147

GDS at qualifying

37.2% ≤39% ✓

TDS at qualifying

41.6% ≤44% ✓

What you actually qualify for

Max mortgage at qualifying

$412,000

Max purchase price

$452,000

What do these affordability numbers mean for you?

Calculators show the range — a free call confirms stress-test borrowing power and next steps to pre-approval.

1-226-783-1640

How the Stress Test Is Calculated (OSFI B-20)

Your qualifying rate is the higher of your contract rate plus 2 percentage points, or 5.25%. On a $560,000 mortgage at 4.69% over 30 years, your actual payment is about $2,512/mo — but you must prove you could afford $3,147/mo at 6.69%. Lenders then check two ratios: GDS (housing costs ÷ gross monthly income) must be ≤39%, and TDS (housing + all debts ÷ income) must be ≤44%, both measured at the qualifying rate. If either fails, you do not qualify for that price — even though your real payment is lower.

Why Your Borrowing Power Drops ~20%

The 2% buffer simulates rate shock. Every $100/mo in non-mortgage debt (car loan, credit cards, student loan) cuts your max mortgage by roughly $15,000–$20,000 under stress test math. Increasing your down payment helps more than you think: on a $600K home, moving from 6.7% ($40K) to 10% ($60K) down raises your max price because the mortgage — and its qualifying payment — both shrink. This calculator shows both payments side by side so you can see exactly how much headroom the stress test removes.

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Before you go

Still shopping for your first home?

A licensed LendCity advisor can walk you through FHSA, down payment, and pre-approval — free, no pressure. Most people leave with a clearer next step.