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Reviewed by Scott Dillingham · Licensed Mortgage Agent (Ontario, Level 2) · Updated August 23, 2026

Calculators

Canadian Mortgage Stress Test Calculator

See your maximum qualifying mortgage under OSFI B-20. The MQR uses the greater of your contract rate + 2% or the 5.25% floor. As of November 21, 2024, the prescribed MQR is exempt for uninsured straight-switch renewals — B-20 overlays remain, and the MQR still applies to any refinance or new money.

This calculator always applies the full prescribed MQR (greater of contract rate + 2% or 5.25%). That math is for new money, a refinance, or an amortization change. An uninsured straight switch (same balance, same or shorter amortization) is exempt from the prescribed MQR; Guideline B-20 and lender overlays can still apply. The numbers here do not silently skip the stress test.

Mortgage Stress Test Calculator

Full prescribed MQR math — refinance, new money, or amortization change. Not a silent skip for switches.

This calculator always applies the full prescribed MQR (greater of contract rate + 2% or 5.25%). That math is for new money, a refinance, or an amortization change. An uninsured straight switch (same balance, same or shorter amortization) is exempt from the prescribed MQR; Guideline B-20 and lender overlays can still apply. The numbers here do not silently skip the stress test.
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yrs

Prescribed MQR

6.29%

Contract + 2% — refi / new money

Max Monthly PITH

$3,333

Caps 39% / 44%

Max Mortgage (Full MQR)

$507,245

Not a straight-switch model

Max Mortgage (Contract Rate)

$615,167

Payment at contract rate only

You qualify for up to $507,245 under the stress test. A broker can find the lender whose ratios best fit your situation.

A broker will confirm this with real lender quotes, for free.

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How to read it

What these numbers mean.

How the Stress Test Works (2026)

OSFI Guideline B-20 requires federally regulated lenders (all Big 6 banks, most credit unions at the federal level, and all monoline lenders) to qualify uninsured mortgage borrowers using a Minimum Qualifying Rate (MQR): the greater of your contract rate + 2% or a 5.25% floor.

With today's 5-year fixed rates around 4.04% insured and 4.24% uninsured (May 2026), most borrowers are stress-tested at 6.04–6.24% (contract + 2%), not the 5.25% floor. CMHC applies the same test to insured mortgages (under 20% down).

The November 2024 Straight-Switch Exemption

On November 21, 2024, OSFI exempted uninsured straight-switch renewals from the prescribed MQR. If you're moving your mortgage to a new federally regulated lender at renewal with:

  • The same outstanding balance (plus up to ~$3,000 for fees)
  • The same remaining amortization
  • No cash taken out, no new money advanced

…the new lender is not required to apply the MQR. You qualify at the contract rate. This change mirrors the insured-mortgage exemption already in place and finally put uninsured borrowers on equal footing with their insured counterparts. See our switching lenders guide for the full process.

GDS and TDS Ratios

GDS — Gross Debt Service

Housing costs only:

  • Principal + interest
  • Property tax (÷ 12)
  • Heat (÷ 12)
  • 50% of condo fees

Max: 39% of gross monthly income (insured)

TDS — Total Debt Service

GDS plus all other debts:

  • Credit card minimums (3% of balance)
  • Car loans / leases
  • Lines of credit
  • Student loans, child support

Max: 44% of gross monthly income (insured)

Frequently Asked Questions

Does this calculator skip the stress test if I switch lenders?

No. This tool always applies the full prescribed MQR (greater of contract rate + 2% or 5.25%). Prescribed MQR applies to new money, refinance, and amortization changes. An uninsured straight switch (same balance, same or shorter amortization) is exempt from the prescribed MQR, but Guideline B-20 and lender overlays can still apply.

What is the Canadian mortgage stress test?

The stress test (OSFI Guideline B-20) requires federally regulated lenders to qualify uninsured mortgage borrowers at the greater of their contract rate plus 2%, or a floor of 5.25%. Insured borrowers face the same test via CMHC. It ensures you could still afford payments if rates rise.

Do I need to pass the stress test at renewal?

Since November 21, 2024, OSFI exempts uninsured straight-switch renewals from the prescribed MQR — same balance, same amortization, no new money. Guideline B-20 and lender overlays remain. Insured simple renewals were already exempt. The MQR still applies if you refinance, change amortization significantly, or add a co-borrower.

What is GDS and TDS?

GDS (Gross Debt Service) is the percentage of your gross monthly income that goes to housing costs (principal, interest, property tax, heat, 50% of condo fees). TDS (Total Debt Service) adds all other debt payments. Typical limits: GDS 39%, TDS 44% for insured; lenders often allow higher for uninsured.

Do credit unions apply the stress test?

Provincial credit unions are not regulated by OSFI and are not bound by B-20. Many apply a similar test voluntarily, but some will qualify you at your contract rate — giving you more borrowing capacity. Federally chartered credit unions (like Meridian OneCap at the federal level) do apply the stress test.

What if I fail the stress test at renewal?

If you're doing an uninsured straight switch, the prescribed MQR does not apply — overlays can still apply. If you're refinancing or adding new money, failing the MQR means your current lender has leverage. A broker can explore credit unions or alternative lenders not bound by B-20.

Next step FSRA #12728

Does the stress test decide for you?

We'll confirm whether a straight switch is exempt — then compare lenders.

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