Stress Test Calculator 2021
WOWA Trusted and TransparentStress Test Rate Dropping to 4.79%
August 12th, 2020
The stress test rate has fallen by 15 basis points to 4.79%, 40 basis points lower than early 2020 and only 15 basis points above the record-low of 4.64%.
This comes as National Bank followed the rest of the Big 5 in cutting their posted 5-year fixed rate to 4.79% from 4.94%. BMO and CIBC lowered their rates over the weekend and TD and RBC lowered their rates last week.
As of August 12th, 2020, this has been confirmed by the Bank of Canada. Our calculator has been updated to reflect these new changes.
Mortgage Terms
The purchase price of your home.
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%.
The annual interest rate on the mortgage loan amount. A lower interest rate can drastically reduce your mortgage payments.
Unsure about your purchase price? Find out how much you can afford.
Your Income
Your Partner’s Income
Gross Income: $00
Estimated Net Income: $00
Where are you looking to buy?
What type of home are you looking for?
Condo Apt.
Townhouse
Detached House
Not DecidedFood & Groceries
Car & Transport
Bills (e.g. Phone, TV)
Other Expenses
Some examples include: Credit Card, Student Loan, Car Payment, etc.
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%.
Learn more about the stress test on our Mortgage Stress Test Guide page