Mortgage stress test calculator
Enter your mortgage and contract rate to see the rate lenders test you at, the payment at that rate, and how much mortgage a given monthly payment supports.
Free · no signup Runs in your browser
Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-23. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
What is the mortgage stress test in Canada?
OSFI's minimum qualifying rate for uninsured mortgages is the greater of your contract rate plus 2% or 5.25%. A lender checks that you could carry the payment at that higher rate, even though you will pay the contract rate. OSFI reviews the buffer and the floor at least annually. OSFI does not expect lenders to apply it to an uninsured straight switch at renewal.
Why we built this calculator
The stress test is the single rule that most often surprises buyers: the payment you will make and the payment you must prove you could make are different numbers. Most explanations stop at "add two per cent", which is only half the rule. There is also a floor, and in a low-rate market the floor is what binds.
This calculator applies both parts, shows the two payments side by side, and works backwards from a payment budget to the largest mortgage it supports at the qualifying rate. It uses the same inputs as the mortgage payment calculator.
It runs in your browser. Nothing you enter is sent anywhere, and there is no sign-up.
When to use it
- Before you shop, to see how much mortgage a payment can support
- When a lower contract rate seems to promise more buying power
- To see whether the buffer or the floor is the part that applies to you
- When you are considering switching lenders at renewal
Mistakes it helps you avoid
- Assuming the test is always contract rate plus two. At low contract rates the 5.25% floor applies instead.
- Treating the qualifying payment as what you will pay. You pay the contract rate.
- Forgetting the rule is reviewed at least annually, so the buffer and floor can change.
- Applying the uninsured rule to an insured mortgage without checking with your lender.
How the qualifying rate is set
The qualifying rate is the higher of two numbers, and the payment at that rate uses the standard loan formula.
qualifying rate = the greater of:contract rate + 2.00%5.25%payment at a rate = loan × i ÷ (1 − (1 + i)^−N)largest mortgage = payment × (1 − (1 + i)^−N) ÷ i at the qualifying rate
The buffer and the floor are OSFI's current figures, and OSFI says it reviews them at least annually. You can edit both in the rate panel if they change. OSFI also says it does not expect lenders to apply the minimum qualifying rate to uninsured straight switches at renewal, meaning a move of an uninsured mortgage to another federally regulated lender with no increase in the amortization or the loan amount.
Worked example: $500,000 at a 4.50% contract rate
You are borrowing $500,000 over 25 years at a 4.50% contract rate, compounded semi-annually.
- Contract rate + 2.00%6.50%
- The floor5.25%
- Qualifying rate: the greater of the two6.50%
- Payment at the 4.50% contract rate$2,767.36
- Payment at the 6.50% qualifying rate$3,349.12
- Extra you must prove you can carry$581.75
You pay $2,767.36 a month, but a lender checks that you could carry $3,349.12.
Working backwards, a budget of $2,767.36 a month supports only $413,148 at the qualifying rate. That is $86,852 less than the mortgage you applied for, which is why the stress test limits what you can borrow even when the contract payment looks comfortable.
When the floor applies
If your contract rate plus two points is below 5.25%, the floor sets the qualifying rate instead. That happens for any contract rate under 3.25%. At a 3.00% contract rate, for example, you are tested at 5.25%, which is a 2.25-point buffer rather than two points.
Renewals and switches
OSFI says it does not expect lenders to apply the minimum qualifying rate to uninsured straight switches at renewal. Its page does not address renewing with your current lender. See the minimum down payment calculator for the other main qualifying rule, and how Canada's qualifying rules fit together.
Terms on this page
- Minimum qualifying rate
- The rate a lender must use to test whether you could afford an uninsured mortgage if rates rose. Currently the greater of the contract rate plus 2% or 5.25%.
- Contract rate
- The interest rate you actually pay under your mortgage.
- Straight switch
- Moving an uninsured mortgage to another federally regulated lender at renewal with no increase in the amortization or the loan amount.
What has changed, and when
Rates on this page have not always been what they are today. If you are working on an earlier period, use the figure that applied at the time rather than the current one.
- Current The greater of the contract rate plus 2% or 5.25%, per OSFI's page dated January 2026. OSFI reviews the buffer and the floor at least annually.
Common questions
What is the minimum qualifying rate in Canada?
OSFI sets it for uninsured mortgages at the greater of your contract rate plus 2% or 5.25%. OSFI reviews the buffer and the floor at least annually.
Do I pay the qualifying rate?
No. You pay your contract rate. The qualifying rate is only the rate your lender uses to check that you could still afford the payment if rates rose.
Does the stress test apply when I renew?
OSFI says it does not expect lenders to apply it to uninsured straight switches at renewal, which is moving to another federally regulated lender with no increase in the loan amount or amortization. Its page does not address renewing with your current lender.
Does the stress test apply to insured mortgages?
OSFI's page is framed around uninsured mortgages, which have a down payment of 20% or more. If your down payment is smaller, ask your lender how the test applies to you.
Why does a lower rate not always let me borrow more?
Because of the 5.25% floor. If your contract rate is below 3.25%, you are tested at 5.25% regardless, so a lower contract rate does not reduce the qualifying payment.
What to work out next
- Mortgage paymentSee the payment you will actually make at the contract rate, and the balance at renewal.
- Minimum down paymentWork out the down payment that goes with the mortgage you can qualify for.
- FHSA roomBuilding the down payment? See how much FHSA room you have.
- Toronto closing costsAdd closing costs for a Toronto purchase.
Where these numbers come from
- OSFI — Minimum qualifying rate for uninsured mortgages The greater of the contract rate plus 2% or 5.25%, reviewed at least annually, and the exemption for straight switches.
Last verified 2026-10-23 Rates on this page are checked against the sources above at least once a year, and whenever the governing authority announces a change. Spotted something out of date? Tell us and we will fix it.
Related calculators
Mortgage payment
Work out your payment with Canadian compounding, any payment frequency, and the balance when your term ends.
Open calculatorMinimum down payment
Find the minimum down payment for a price, and the most you can buy with the savings you have.
Open calculatorFHSA room
See how much First Home Savings Account room you have this year, including carry-forward and the tax you save.
Open calculatorCompound interest
Growth with regular contributions, and the semi-annual compounding convention Canadian fixed-rate mortgages use.
Open calculatorMortgage affordability
Find the largest home price you can qualify for from your income, debts and down payment, using the GDS and TDS limits and the stress test.
Open calculatorBreak your mortgage
Estimate the prepayment penalty and see whether switching to a lower rate pays back before your term ends.
Open calculatorRead the guide
- How Canada's mortgage qualifying rules work: stress test, down payment and amortizationThe three rules that decide how much you can borrow: the stress test, the down payment tiers and the amortization limit.
- Buying a home in Canada: a checklist of every cost and the calculator for eachThe price is only the start. Here is each cost between a down payment and getting the keys, and the tool for it.
🏡 Mortgage and home buying calculators
Calculators for the cash and the qualifying rules that stand between you and the keys.
See all 17 calculators in this section