Stress Test Calculator2021

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Mortgage Terms

Purchase Pricehelp

The purchase price of your home.

Down Paymenthelp

The amount paid upfront. In Canada, the minimum down payment is 5%. Mortgage default insurance (commonly referred to as CMHC insurance) is required for down payments under 20%.

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Interest Rate help

The annual interest rate on the mortgage loan amount. A lower interest rate can drastically reduce your mortgage payments.

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Amortization

25 Years

Unsure about your purchase price? Find out how much you can afford.

Annual Household Income

Your Income

Your Partner’s Income

Enter your annual income before taxes.
Gross Income: $00
Estimated Net Income: $00

I am self-employed with variable income

Where are you looking to buy?

Province

ON

City

Toronto

What type of home are you looking for?

Condo Apt.

Townhouse

Detached House

Not Decided

Monthly Non-Housing Expenses

Food & Groceries

Car & Transport

Bills (e.g. Phone, TV)

Other Expenses

Enter your average monthly expenses in each of the above categories, excluding any housing-related expenses. Exclude your heating costs from your utility bill total.

Monthly Debt Paymentshelp

Some examples include: Credit Card, Student Loan, Car Payment, etc.

Enter your average monthly payment. If you have multiple sources of debt, enter the total for your household.

Did I Pass?

How is my stress-test mortgage payment calculated?

To pass the stress test, you must still be able to afford your mortgage payments if your interest rate increases to a value called the qualifying rate.

If your mortgage is uninsured (generally, if your down payment is 20% or higher), then the qualifying rate is the higher of

• the Bank of Canada five-year benchmark rate, currently set to 4.79%, and
• your current or target interest rate plus 2%.

If your mortgage is insured (required if your down payment is below 20%), then the qualifying rate is the higher of

• the Bank of Canada five-year benchmark rate, currently set to 4.79%, and
• your current or target interest rate.

Earlier Proposed Stress Test Changes

As of March 13th, 2020, a previously announced change to the mortgage stress test for insured mortgages has been suspended. The proposed changes were announced on Februrary 18th, 2020 by Minister Morneau and included a change to the Benchmark Rate for insured mortgages to be set to the weekly median 5-year fixed insured mortgage rate as calculated by the Bank of Canada plus an additional 200 basis points, to take effect April 6th, 2020. These changes are now suspended.

The Benchmark Rate for insured mortgages will continue to be the 5-Year Benchmark Rate currently at 4.94% until further notice.

The Benchmark Rate for uninsured mortgages was not part of the proposed changes and will continue to remain at the 5-Year Benchmark Rate of 4.94%.