Free calculator · Qualifying & Pre-Approval
Mortgage Stress Test Calculator
See the qualifying rate the federal mortgage stress test applies to your application and what it does to your maximum purchase price.
See the rate the stress test applies to you
The federal mortgage stress test makes most borrowers qualify at a rate higher than their contract rate. Enter your mortgage details and an editable qualifying-rate floor to see the rate a lender would use, the payment at that rate, and how much more it costs than your actual payment.
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Estimates only. This is not a quote, pre-approval, or approval. The stress test applies to most federally regulated lenders; confirm your qualifying rate and rules with your lender.
How this is calculated
The qualifying rate is the higher of two figures: your contract rate plus two percentage points, or the published qualifying-rate floor you entered. The tool then calculates the payment at both your contract rate and the qualifying rate using semi-annual compounding, P = L × i ÷ (1 − (1 + i)−n), where i is the effective monthly rate and n is the number of monthly payments. The difference between the two payments shows the cushion the lender is testing, and the extra-interest figure compares total interest over the full amortization at each rate.
The higher-of rule
You qualify at the greater of the two numbers, not the lower. If your contract rate plus two points is already above the floor, that is your qualifying rate. If rates are high and the floor is lower, the plus-two figure usually wins. When the floor is higher than contract-plus-two, the floor sets your qualifying rate. Because the floor is reviewed periodically, the default in this tool is editable and should be confirmed with OSFI or your lender.
Who the stress test applies to
The federal stress test applies to most mortgages from federally regulated lenders, including many fixed-rate and variable-rate products, and to refinances and some secured lines of credit. Some credit unions and private lenders are provincially regulated and may apply different rules. If you are renewing with your existing lender and not changing the amortization or borrowing more, the test often does not apply, but policies vary.
What the qualifying rate means for you
- Your actual payment is still based on your contract rate — the qualifying rate only affects approval.
- A higher qualifying rate reduces how much you can borrow, all else equal.
- Paying down other debts can offset the effect by freeing room under the TDS limit.
- A larger down payment or a shorter amortization changes the picture, so compare scenarios.