Stress Test Calculator
Discover the Maximum Mortgage You Qualify For
The mortgage stress test is a federally mandated rule that requires lenders to qualify borrowers at a higher interest rate than the actual rate of their mortgage. This ensures that borrowers could still afford their mortgage payments if interest rates were to rise in the future.
How It Works
When applying for a mortgage, your debt service ratios (GDS and TDS) are not calculated using your contract rate (the rate you’ll actually pay). Instead, they are tested at the greater of:
- The benchmark qualifying rate (currently 5.25%), OR
- The contract rate + 2%
Example:
You are offered a 4.50% mortgage but to qualify, we assume a 6.50% mortgage. This means you qualify for a smaller mortgage.
Disclaimer
The mortgage calculators provided on this website are for general informational and illustrative purposes only. The results generated are based on user-entered information and standardized assumptions regarding interest rates, amortization periods, debt service ratios, stress test requirements, property taxes, and other inputs.
These tools do not constitute financial advice, mortgage advice, a mortgage approval, or a commitment to lend.
Actual mortgage qualification and terms depend on many factors, including but not limited to:
-
Verification of income and employment
-
Credit history and credit score
-
Existing debt obligations
-
Down payment source and documentation
-
Property type and location
-
Applicable federal and provincial regulations
-
Specific lender underwriting policies and guidelines
Lender policies and regulatory requirements may change without notice and may differ between financial institutions. As a result, the outcomes produced by these calculators may not reflect the final mortgage approval amount, interest rate, product structure, or conditions offered by a lender.
For advice tailored to your individual circumstances, please consult with me.
Mortgage services are provided in accordance with applicable provincial legislation, including the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Ontario) and regulated by the Financial Services Regulatory Authority of Ontario (FSRA) where applicable.
Get a free subscription to “The Mortgage Insider” containing rate updates and financial strategies!
