Find out if you qualify under Canada's mortgage stress test. See your GDS, TDS, and maximum affordable home price.
Quick Answer:The stress test qualifying rate is the higher of your contract rate + 2% or 5.25%. You must keep GDS at or below 39% and TDS at or below 44% to pass.
Stress Test Result
Calculating... qualifying rate
Monthly Payment (Contract)
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Monthly Payment (Stress Test)
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GDS Ratio
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Limit: 39%
TDS Ratio
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Limit: 44%
In 2026, the stress test floor rate remains at 5.25%. If your contract rate is above 3.25%, the stress test rate will be your rate plus 2%. To improve your chances of passing: pay down existing debts to reduce your TDS ratio, consider a longer amortization period to lower monthly payments, or increase your down payment. Remember that CMHC insurance is required for down payments below 20%, which adds to your mortgage amount.
The Canadian mortgage stress test requires borrowers to qualify at a rate higher than their actual mortgage rate. The qualifying rate is the greater of 5.25% or the contract rate plus 2%. This ensures borrowers can still afford payments if interest rates rise. All federally regulated lenders must apply this test, regardless of down payment size or whether the mortgage is insured.
GDS (Gross Debt Service) ratio measures housing costs as a percentage of gross income. It includes mortgage payments, property taxes, heating costs, and 50% of condo fees. The limit is 39%. TDS (Total Debt Service) adds all other debt payments (car loans, credit cards, student loans) to the GDS calculation. The limit is 44%. Both must be met to pass the stress test.
If you fail the stress test at a federally regulated lender, you have options: reduce your target home price, increase your down payment, pay off existing debts to lower your TDS ratio, or apply with a non-federally regulated lender (credit union or private lender) that may not require the stress test. However, these alternative lenders often charge higher interest rates and fees.