How the stress test works
The test uses a higher interest rate than the one you will pay, to make sure you can handle a rise.
The qualifying rate
It is the greater of your contract rate plus 2 percentage points or 5.25%. At a 4.5% rate you are tested at 6.5%. At 3% you are tested at 5.25%.
Who has to pass
OSFI expects federally regulated lenders to apply it to most newly underwritten mortgages, and CMHC applies the same qualifying rate to insured ones. OSFI does not expect it for an uninsured straight switch at renewal, to another federally regulated lender with no increase in the amortization or the loan amount.
What you actually pay
The test only decides how much you can borrow. Your payments are worked out at your real rate.
Limits can differ
Your lender may use stricter limits than the 39% and 44% shown here, or lower ones for large mortgages.
Looking at the payment at your actual rate. At a 4.5% rate a $500,000 mortgage costs about $2,770 a month, but you must show you can carry about $3,350 (the payment at 6.5%).
GDS and TDS
Two ratios compare monthly costs with your gross (before tax) monthly income.
Gross debt service (GDS)
Mortgage payment at the qualifying rate, property taxes, heating and half of any condo fees. The limit is 39% of gross income.
Total debt service (TDS)
Everything in the GDS plus your other debt payments, such as car loans and credit cards. The limit is 44%.
Frequently asked questions
What is the stress test rate today?
The greater of your mortgage rate plus 2% or 5.25%. OSFI’s page showed this as the current rate when we checked it on November 1, 2026. OSFI reviews the floor and the buffer at least once a year, so it can change.
Does the stress test apply to insured mortgages?
Yes. A mortgage with less than 20% down must be insured and qualified at the same minimum rate, and the CMHC limits of 39% GDS and 44% TDS apply.
Why is my result a price and not just a mortgage?
The price is the largest mortgage plus your down payment, less the CMHC premium when you put less than 20% down. The premium is added to the mortgage, so it lowers the price you can buy.
Does it matter whether my rate is fixed or variable?
The qualifying rate is calculated the same way for both. The payment uses semi-annual compounding, as used for fixed-rate mortgages.
Can a co-borrower help me pass?
Yes, because the lender adds the incomes and debts. Enter the combined gross income and all debts of the people on the mortgage.
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How we check it
The tests check the qualifying rate rule (including the 5.25% floor), the GDS and TDS room against figures worked out by hand from CMHC’s formulas (39%, 44%, half of condo fees), the payment maths against the York University mortgage guide’s $639.81 example, and that the highest price is exactly the last price whose loan fits, by a brute-force scan.
We did not compare with a lender’s pre-approval or with another stress test calculator. The 39% and 44% limits are CMHC’s for insured loans. Uninsured lenders are not bound by them. Lenders also use their own rules on heat, other debt and income, so your approval can differ.