Mortgage Stress Test Calculator

Canadian lenders must qualify you at the higher of your contract rate + 2% or 5.25%. Find out if you pass — and how much home you can actually afford.

Annual Household Income

= $7,500/mo gross

Monthly Debt Payments

Car loans, credit cards (min. payment), student loans, etc.

Home PriceDown Payment

= 20.0% of price

Contract Interest Rate (%)

The rate your lender is offering

Amortization (Years)Annual Property Tax

= $315/mo

Monthly Heating

Oil heat avg. $150–$250/mo in NL

Monthly Condo Fees

What is the stress test?

Since 2018, OSFI requires all federally regulated lenders to qualify borrowers at max(contract rate + 2%, 5.25%). This ensures you can still afford payments if rates rise after your term ends.

GDS (Gross Debt Service): housing costs as % of gross income. Limit: 39%.

TDS (Total Debt Service): all debt payments as % of gross income. Limit: 44%.

How This Is Calculated

01
Stress Test Rate
max(contract rate + 2%, 5.25%)
max(5.5% + 2%, 5.25%)=7.50%
OSFI rule for federally regulated lenders (since 2018)
02
Monthly Payment (stress rate)
P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1)
$440,000 @ 7.50% / 25 ans=$3,219/mo
03
GDS Ratio
(mortgage + tax/12 + heating + fees) ÷ monthly income
$3,734 ÷ $7,500 × 100=49.8% (limit 39%)
04
TDS Ratio
(GDS costs + monthly debts) ÷ monthly income
($3,734 + $500) ÷ $7,500 × 100=56.5% (limit 44%)

GDS Cost Breakdown

Mortgage (stress)

$3,219/mo

Tax/mo

$315/mo

Heating

$200/mo

Total GDS$3,734/mo