Stress Test Calculator 2025

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Best 5-Year Fixed Mortgage Rates in Canada

Select Mortgage Term:

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5-Yr

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Inputs

Purchase Price

The purchase price of your home.

Down Payment

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

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

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Amortization5 Years6 Years7 Years8 Years9 Years10 Years11 Years12 Years13 Years14 Years15 Years16 Years17 Years18 Years19 Years20 Years21 Years22 Years23 Years24 Years25 Years26 Years27 Years28 Years29 Years30 Years31 Years32 Years33 Years34 Years35 Years

Annual Household Income

Your Income

$

Your Partner’s Income

$

Enter your annual income before taxes.

I am self-employed with variable income

Where are you looking to buy?

Province

ABBCMBNBNLNSNTNUONPEQCSKYT

City

BarrieBellevilleBramptonBrantBrantfordBrockvilleBurlingtonCambridgeClarence-RocklandCornwallElliot LakeEtobicokeGreater SudburyGuelphHaldimand CountyHamiltonKawartha LakesKenoraKingstonKitchenerLondonMarkhamMississaugaNewmarketNiagara FallsNorfolk CountyNorth BayNorth YorkOakvilleOrilliaOshawaOttawaOwen SoundPembrokePeterboroughPickeringPort ColbornePrince Edward CountyQuinte WestRichmond HillSarniaSault Ste. MarieScarboroughSt. CatharinesSt. ThomasStratfordTemiskaming ShoresThoroldThunder BayTimminsTorontoVaughanWaterlooWellandWindsorWoodstockOther

What type of home are you looking for?

Condo Apt.TownhouseDetached HouseNot Decided

Property Tax

$

Heating Cost

$

Condo Fees

$

Monthly Debt Payments

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?

Check Your Mortgage Affordability

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Check Your Mortgage Affordability

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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.

The qualifying rate is the higher of:

• The benchmark rate of 5.25%, and
• Your current or target interest rate plus 2%.

A mortgage stress test is conducted by your mortgage lender to assess whether you could continue to make your mortgage payments if interest rates were to rise. This test helps ensure that you can handle potential increases in borrowing costs.

All federally regulated lenders in Canada—such as banks—are required to perform this test when you:

• Apply for a new mortgage
• Refinance an existing mortgage

The stress test can reduce the amount you qualify to borrow compared to the amount you would be eligible for based on current interest rates. In some cases, it may even disqualify you from getting a mortgage with a federally regulated lender.

Rather than assessing your ability to afford payments at the actual interest rate offered, lenders use a higher qualifying rate—either the floor rate or your contract rate plus 2%, whichever is higher. This ensures a financial cushion in case rates increase in the future.

Best 5-Year Fixed Mortgage Rates in Canada

Select Mortgage Term:

1-Yr

2-Yr

3-Yr

4-Yr

5-Yr

Fixed

Variable

See More Rates

A stress test is calculated by finding out what your mortgage payments would be if interest rates rise to a value called the qualifying rate. This qualifying rate might differ depending on whether your mortgage is insured or uninsured.

If your mortgage is uninsured, then the stress test will be calculated at a qualifying rate which is the higher of

• a floor rate of 5.25%, and
• your current interest rate plus 2%.

If your mortgage is insured, then the qualifying rate is the higher of

• a floor rate of 5.25, and
• your current interest rate plus 2%.

Failing a mortgage stress test means that you will be ineligible for a mortgage at any federally-regulated lender. This includes all of the Big Banks in Canada, including RBC and TD.

If you have failed the mortgage stress test, or you are looking to avoid it, you may consider un-regulated lenders, such as private mortgage lenders. Private lenders are not required to conduct a stress test and they are generally more flexible in their lending requirements, such as if you have a bad credit score or if you are self-employed. However, private mortgages come with much higher mortgage rates, even in excess of 10%.

Refinancing your mortgage also means that you will have to undergo another mortgage stress test.

Is a Mortgage Stress Test Needed?

Your mortgage affordability depends on three key factors:

• The size of your down payment
• Your Gross Debt Service (GDS) Ratio
• Your Total Debt Service (TDS) Ratio

• GDS Ratio: This is the percentage of your monthly income that goes toward housing costs—typically your mortgage payment, property taxes, and (half of) condo fees (if applicable).
• TDS Ratio: This includes all your housing costs plus other monthly debt obligations, such as credit card payments, car loans, and student loans—expressed as a percentage of your monthly income.

The Canada Mortgage and Housing Corporation (CMHC) updated its policy to ease restrictions imposed in mid-2020 for new insured mortgages. Here are the current qualifying criteria:

• ✅ Minimum credit score of 600
• ✅ Maximum GDS ratio of 39%
• ✅ Maximum TDS ratio of 44%

Note: CMHC does not accept down payments funded through additional debt, such as personal loans. Only traditional sources like savings or gifts are eligible.

Use a mortgage stress test calculator to:

• Estimate your GDS and TDS ratios
• Confirm whether your down payment meets minimum requirements
• Determine if you qualify for a CMHC-insured mortgage

CMHC Insurance Requirements

Over the past eight years, Canada’s mortgage stress test has undergone several key changes aimed at strengthening financial stability and protecting borrowers from rising interest rates. Here's how it evolved:

2016: Introduction for Insured Mortgages

• The federal government introduced the stress test for insured mortgages (those with less than 20% down).
• Borrowers had to qualify at the Bank of Canada’s 5-year benchmark rate, not their actual contract rate.
• Goal: Ensure borrowers could afford payments if rates rose.

2018: Expansion to Uninsured Mortgages

• OSFI (Office of the Superintendent of Financial Institutions) expanded the stress test to uninsured mortgages (20%+ down).
• Borrowers had to qualify at the greater of:
• The benchmark rate (then ~5.34%)
• Their contract rate + 2%
• This move significantly reduced borrowing power and cooled overheated markets.

2020: Proposed Benchmark Rate Reform

• The federal government proposed using a median 5-year fixed insured mortgage rate + 2% instead of the posted rate.
• Intended to make the stress test more responsive to market conditions.
• Implementation was delayed due to the COVID-19 pandemic.

2021: Tougher Rules Implemented

• OSFI raised the minimum qualifying rate to 5.25% for uninsured mortgages.
• This change reduced buying power by ~4–5% for many borrowers.
• The Department of Finance matched the rule for insured mortgages.

2022–2023: No Change Despite Rising Rates

• Despite interest rates climbing above 6%, OSFI kept the stress test unchanged at 5.25% or contract rate + 2%.
• Borrowers were qualifying at rates above 8%, leading to affordability concerns.
• OSFI launched consultations to review the framework.

2024: Major Reform for Renewals

• OSFI removed the stress test requirement for borrowers switching lenders at renewal, provided the loan amount and amortization remain unchanged.
• This addressed long-standing concerns about reduced competition and borrower flexibility.
• The Canadian Mortgage Charter reinforced this change for insured mortgages.

2025 and Beyond: Potential Overhaul

• OSFI is evaluating a Loan-to-Income (LTI) cap as a possible replacement or complement to the stress test.
• Proposal: Limit lenders to issuing no more than 15% of mortgages with debt exceeding 450% of borrower income.
• Decision expected after a full year of testing (OSFI’s ongoing monitoring and evaluation).

Stress Test Mortgage Rate Changes

Source: Bank of Canada

Best 5-Year Fixed Mortgage Rates in Canada

Select Mortgage Term:

1-Yr

2-Yr

3-Yr

4-Yr

5-Yr

Fixed

Variable

See More Rates