Real Estate

Mortgage Stress-Test Budget

Illustrate a mortgage budget at the qualifying rate, with housing costs and debts included.

Use a qualifying rate of the higher of contract rate plus two percentage points or 5.25%, with illustrative 39% GDS and 44% TDS limits. This is a budget illustration, not a lender qualification or approval.

Enter your numbers

Gross Annual Income ($)

Contract Rate (%)5.5%

The rate your lender offers you.

Down Payment ($)

Monthly Existing Debt Payments ($)

Monthly property tax, heating and 50% of condo fees ($)

Results update as you change the inputs. Calculations run in your browser.

Illustrative price before insurance

$564763

qualifying Rate: 7.50%
mortgage Principal: $464763
monthly Mortgage Budget: $3400.00

See the formula

Formula and method

Mortgage payment budget = max(0, min(39% × gross monthly income − housing costs, 44% × gross monthly income − housing costs − debts)).

Solves a 25-year monthly mortgage at the equivalent Canadian semi-annual compounding rate. Adds the entered down payment. Mortgage insurance, minimum down payment eligibility, lender credit tests and income verification are excluded.

Sources checked October 12, 2026

Worked examples

Dual income household

Gross Annual Income ($):: 180000
Contract Rate (%):: 5.5
Down Payment ($):: 150000
Monthly Existing Debt Payments ($):: 800
Monthly property tax, heating and 50% of condo fees ($):: 500

Illustrative price before insurance: $874484

Single earner with car payment

Gross Annual Income ($):: 90000
Contract Rate (%):: 5.5
Down Payment ($):: 60000
Monthly Existing Debt Payments ($):: 500
Monthly property tax, heating and 50% of condo fees ($):: 500

Illustrative price before insurance: $374399

Assumptions and limits

Illustrative 39% GDS and 44% TDS limits; actual underwriting varies
25-year amortization; qualifying rate max(contract + 2%, 5.25%)
No mortgage insurance or minimum down payment validation

This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.

Common mistakes to avoid

Using the contract rate to estimate qualifying amount — the stress test rate is always higher.
Not including existing debt payments in the TDS calculation.
Thinking pre-approval equals final approval — conditions and appraisal can still change things.

Frequently asked questions

Does this prove I qualify?

No. Lenders assess income, credit, debt, property and insurer eligibility. This tool is a simplified budget illustration.

Does the prescribed rate apply to every renewal?

No. OSFI removed the prescribed MQR for eligible uninsured straight switches at renewal in November 2024. Other underwriting requirements still apply.