For home buyers

    Mortgage Stress Test Calculator

    Check whether you pass the OSFI B-20 mortgage stress test. The calculator qualifies you at the higher stress-test rate and checks your debt-service ratios against the lender limits.

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    Enter your income and mortgage amount to run the stress test.

    Estimate only. The OSFI B-20 stress test qualifies you at the greater of your contract rate + 2% or the 5.25% floor, with GDS capped near 39.0% and TDS near 44.0%. Lenders weigh credit and other factors too. Confirm with a lender or broker.

    How the stress test works

    Federally regulated lenders must confirm you could still afford your mortgage at a higher rate than the one you are offered. That qualifying rate is the greater of your contract rate plus two percentage points or a 5.25% floor. They then check your Gross Debt Service ratio (housing costs over income, capped near 39%) and Total Debt Service ratio (all debts over income, capped near 44%) using the payment at that higher rate.

    Why it matters even when rates are low

    The stress test is the reason your approved mortgage is smaller than your current payment alone would suggest. It builds a buffer against future rate increases, so a renewal or a move to a higher rate does not push your budget past the breaking point. Passing it is the gate to an approved mortgage.

    Plan the purchase, then keep the record

    Once you pass and close, the mortgage, the rate, and the renewal date all become facts worth keeping. A durable record of your home and its financing is the cheapest insurance a homeowner has, and it is what Habyn property records are built to keep, free for homeowners on the Home plan.

    Frequently asked questions

    What rate does the mortgage stress test use?

    The OSFI B-20 qualifying rate is the greater of your contract rate plus two percentage points or a 5.25% floor. With current rates above about 3.25%, the rate-plus-2% provision usually applies, so a 4.5% mortgage is stress-tested at 6.5%.

    What do I need to pass the stress test?

    At the qualifying rate, your housing costs must stay within the Gross Debt Service limit of about 39% of gross income, and all your debts within the Total Debt Service limit of about 44%. This calculator checks both.

    Does the stress test apply to every mortgage?

    It applies to mortgages from federally regulated lenders, which covers the banks and most lenders. Some provincially regulated credit unions are exempt, and straight switches at renewal without changing the loan amount no longer require re-qualifying at the prescribed rate.

    How can I improve my chances of passing?

    Lower the mortgage amount with a bigger down payment, pay down other debts to free up your TDS room, extend the amortization to lower the qualifying payment, or increase qualifying income. Each moves the ratios in your favour.

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