Stress test calculator
The rate you have to prove you could pay.
Lenders qualify you at the greater of your rate plus two percent, or 5.25% — whichever is higher. Here is what that does to the payment you must satisfy.
The stress test is the single biggest reason people are approved for less than they expect. It is not about the payment you will make — it is about the payment you must demonstrate you could make.
This shows both figures side by side, so you can see the gap the rule creates.
Your rate plus 2% is above the 5.25% floor, so that is what applies.
You must qualify at
6.50%
You will not pay this rate. Lenders test whether you could.
- Payment at your actual rate
- $3,320.84
- Payment you must qualify for
- $4,018.94
- Difference per month
- $698.10
- Buffer applied
- +2%
- Regulatory floor
- 5.25%
Estimate only. Not a commitment to lend. Figures verified July 2026 · OSFI — Minimum qualifying rate for uninsured mortgages.
How this works
The maths, in plain language.
How the qualifying rate is set
The minimum qualifying rate is the greater of your contract rate plus a two percentage point buffer, or a floor of 5.25%. When rates are low the floor applies; when rates are higher the buffer does.
Your actual payment is calculated at your real rate. Only the qualification test uses the higher figure — you never pay it unless rates genuinely rise that far.
The renewal exemption worth knowing about
For a long time, switching lenders at renewal meant requalifying under the stress test while staying put did not — which effectively locked borrowers in with their existing lender.
OSFI has since exempted uninsured straight switches from the prescribed minimum qualifying rate, where the loan amount and amortisation are not increasing. Moving your mortgage at renewal is meaningfully easier than it used to be.
Common questions
About this calculator.
Do I actually pay the stress-tested rate?
No. You pay your contract rate. The higher rate is only used to test whether you could absorb an increase before your term ends.
Does the stress test apply to every mortgage?
It applies to federally regulated lenders, which covers the banks and most large lenders. Some credit unions are provincially regulated and apply their own policies, and uninsured straight switches at renewal are now exempt.
How do I pass it with a bigger mortgage?
Reduce other debt payments, increase your down payment, extend the amortisation, or add a qualified co-applicant. Which of those is realistic depends on your situation — worth a conversation rather than guesswork.
Want these numbers checked by a person?
A calculator does not know your credit, your income structure or which lenders would actually take your file. Twenty minutes on the phone will tell you what this cannot.