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HomeToolsMortgage Stress Test Calculator

Mortgage stress test and GDS/TDS calculator

Enter a deal and see the qualifying rate, GDS and TDS against the Canadian limits. Payments use semi-annual compounding.

Does not pass the stress test

Mortgage amount
$695,925
Includes CMHC premium
$20,925
Qualifying rate
6.79%
Payment at contract rate
$3,964.74/mo
Payment at qualifying rate
$4,784.48/mo
GDS (limit 39%)
45.6%
TDS (limit 44%)
49.5%

How the result is calculated

The qualifying rate is the higher of the contract rate plus 2% or 5.25%. The mortgage payment is recalculated at that rate with Canadian semi-annual compounding, over the amortization you select.

GDS is the qualifying payment plus property tax, heating and 50% of condo fees, divided by gross monthly income. TDS adds the other monthly debt payments. A deal passes when GDS is at most 39% and TDS is at most 44%.

If less than 20% is down, the CMHC premium is added to the mortgage before the payment is calculated, as it would be on a real insured file.

When a deal fails

A failed result does not mean there is no mortgage. Brokers restructure with a larger down payment, a co-borrower, debt paydown or a longer amortization, or place the file with a lender that uses different rules.

Common questions

What is the mortgage stress test in Canada?
The stress test requires a borrower to qualify at the higher of their contract rate plus 2% or 5.25%. A 4.79% contract rate is tested at 6.79%. It applies to federally regulated lenders under OSFI Guideline B-20, and to insured mortgages at every lender.
What are the GDS and TDS limits?
For insured mortgages and most A-lender files, gross debt service (GDS) must be 39% or less and total debt service (TDS) 44% or less, both calculated at the qualifying rate. GDS counts the mortgage payment, property tax, heating and half of any condo fees. TDS adds all other debt payments.
Does the stress test apply when switching lenders at renewal?
Not for an uninsured straight switch to a federally regulated lender, which OSFI exempted in 2024. A refinance or an increase in the loan amount is still stress tested.
Do B-lenders and credit unions use the stress test?
Provincially regulated credit unions and private lenders set their own qualification rules, and many use the contract rate or a lower buffer. That is why a deal that fails here can still be placed with another lender.
Mortgage affordability calculatorCMHC insurance calculator

Run the whole deal, not one number

bips takes the same inputs, runs GDS, TDS and the stress test, then checks the deal against 40+ Canadian lenders and shows who will approve it.

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