Mortgage stress test Canada: what rate do you qualify at?
The Canadian mortgage stress test, sometimes called the mortgage pressure test, is the qualifying screen federally regulated lenders apply to most new mortgages. You qualify at the greater of your contract rate plus 2% or 5.25%, but you still pay your contract rate. Federally regulated lenders aren't expected to re-test same-lender renewals. Since 21 November 2024, uninsured straight switches between federally regulated lenders no longer have to use the set qualifying rate, though the new lender still assesses affordability. Enter your numbers below for an estimate, not a pre-approval.
- Rules verified: 2026-07-13
- Qualifying rate: greater of contract + 2% or 5.25%
- Insured mortgages: same qualifying rate (CMHC)
- Uninsured straight switch at renewal: no OSFI minimum rate since 21 Nov 2024
- GDS ≤ 39%, TDS ≤ 44% (CMHC insured; 50% of condo fees)
- Semi-annual compounding
- Educational only
At 4.29% / 25 years — qualifying rate 6.29%
| Mortgage | Contract P&I | Qualifying P&I |
|---|---|---|
| $300,000 | $1,625.58 | $1,971.43 |
| $400,000 | $2,167.43 | $2,628.58 |
| $500,000 | $2,709.29 | $3,285.72 |
| $600,000 | $3,251.15 | $3,942.87 |
Your mortgage
You pay
$2,167.43/mo
Contract P&I at 4.29%
You qualify at
$2,628.58/mo
6.29% qualifying rate
$461.15 more per month at the qualifying rate — you still pay the contract amount.
Qualifying rate is the higher of 6.29% (contract + 2%) and 5.25% (floor).
How the Canadian mortgage stress test works
You qualify at the greater of your contract rate plus 2 percentage points or 5.25%, but you still pay your contract rate. At a 4.29% contract rate the qualifying rate is 6.29%. On a $400,000 mortgage over 25 years that is $2,167.43 a month at the contract rate and $2,628.58 at the qualifying rate, so you must show you can carry $461.15 a month more than you will actually pay.
Who sets it and who applies it
OSFI sets the minimum qualifying rate for uninsured mortgages and expects federally regulated lenders, such as banks, to apply it to most newly underwritten mortgages under Guideline B-20. The Financial Consumer Agency of Canada says the same qualifying rate applies to insured and uninsured mortgages, and that lenders that are not federally regulated may also ask you to pass a stress test. OSFI reviews the floor and the buffer at least once a year, so check the OSFI minimum qualifying rate page for the current figure.
When the 5.25% floor applies
The floor takes over when your contract rate is below 3.25%, because contract plus 2 would then be under 5.25%. At a 3.00% contract rate you qualify at 5.25%: $1,892.98 a month at the contract rate versus $2,383.67 at the qualifying rate on the same $400,000 mortgage.
Renewals and switching lenders
Since 21 November 2024, OSFI no longer prescribes its minimum qualifying rate for an uninsured straight switch: moving an existing mortgage to another federally regulated lender at renewal with no increase to the loan amount or the remaining amortization. Borrowing more, extending the amortization or refinancing can bring the test back. FCAC says: “If your mortgage contract is with a federally regulated financial institution, such as a bank, the lender must provide you with a renewal statement at least 21 days before the end of the existing term.” For how a switch works, see switching lenders at renewal and the 120-day rate hold.
GDS and TDS at the qualifying rate
FCAC guidance is that housing costs (mortgage payment, property tax, heating and 50% of condo fees) should be no more than 39% of gross household income (GDS), and all debt payments together no more than 44% (TDS). Lenders measure the mortgage part of those ratios at the qualifying payment, not the contract payment.
Some Canadians call it the mortgage pressure test. Figures use semi-annual compounding, the usual convention for Canadian fixed-rate mortgages, and illustrative rates, not quotes. Educational only: not a pre-approval or a lender decision.
Frequently asked questions
What is the mortgage stress test (pressure test) in Canada?
It is the qualifying screen in OSFI Guideline B-20: federally regulated lenders test most new uninsured mortgages at the greater of your contract rate plus 2 percentage points or 5.25%. Insured mortgages are qualified at the same rate under federal mortgage insurance rules. You still pay the contract rate; the higher rate only sizes the qualifying payment. Some Canadians call it the mortgage pressure test.
Does the stress test apply at renewal or a straight switch?
Federally regulated lenders aren't expected to re-test same-lender renewals under the stress test. Since 21 November 2024, OSFI no longer expects federally regulated lenders to apply its minimum qualifying rate to uninsured straight switches, meaning a move to another federally regulated lender with no increase to the loan amount or remaining amortization. For insured mortgages, the Department of Finance says holders can switch lenders at renewal without another stress test. CMHC says moving an insured loan to another lender is subject to conditions that include no increase in the loan amount and keeping the approved amortization period, and the new lender still does its own due diligence. A refinance, extra money or a longer amortization can still be re-tested.
How is the stress test qualifying rate calculated?
Add 2 percentage points to your contract rate and compare the result with the 5.25% floor; the higher number is your qualifying rate. At a 4.29% contract rate you qualify at 6.29%, so a $400,000 mortgage over 25 years is $2,167.43 a month at the contract rate but $2,628.58 at the qualifying rate. At a 3.00% contract rate the floor applies and you qualify at 5.25%: $1,892.98 versus $2,383.67 on the same mortgage. Figures use semi-annual compounding and illustrative rates, not quotes.
What GDS and TDS limits apply with the stress test?
For CMHC-insured mortgages, housing costs at the qualifying rate (principal, interest, property tax, heating and 50% of condo fees) should be no more than 39% of gross income (GDS). All debt payments together should be no more than 44% (TDS). The optional income field above compares only the qualifying principal-and-interest payment with your income, so it is not a full GDS or TDS test.
Is there a mortgage renewal stress test calculator?
Yes. Choose Renewal / straight switch in the form above to see how the qualifying payment changes when the renewal exemption applies, or New mortgage to see the full stress test. It is an educational estimate, not a lender decision.
Is this a pre-approval?
No. This page is an educational payment estimate from the numbers you type. It is not a pre-approval, an offer, or a lender decision.
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