Canadian Mortgage Stress Test Calculator

Do you qualify for a Canadian bank mortgage in 2021?

If you’re applying for a mortgage at a Canadian bank, you will need to pass a Canadian “mortgage stress test.” Navigating the mortgage rules can be complicated. This mortgage stress test calculator easily helps determine if you would qualify based on your income and expenses. Change the default values below (which gives an automatic PASS) to suit your own financial needs. The results are instantly calculated with every change. No waiting! 

June 1, 2021:  Benchmark Rate is now 5.25%

As of June 1, 2021, the Bank of Canada 5-year benchmark rate is 5.25%.

Watch this video for a full explanation and tutorial. 

I passed. What’s next?

Congratulations! You’re one step closer to getting approved for a mortgage! The next step is to complete a secure online application to determine your credit worthiness, income and debt. Once that is completed, we shop for you and compare the best mortgage rate and terms! This saves you a lot of time and money. Contact us to get started.

I did NOT pass. What can I do?

First and foremost, a FAIL does not necessarily mean you cannot get a mortgage.  Although the GDS and TDS are set to 39% and 44%, respectively, some banks or lending institutions may be more flexible.  Contact us to help you determine your options.

You can also decrease the purchase price, increase the down payment, and reduce your monthly debt payments to see if that changes the status to “PASS”.  This mortgage stress test calculator is a reality check to ensure you get a mortgage you can truly afford given your specific financial situation.

Why do I need to pass the Mortgage Stress Test?

As the name of the rule implies, it puts your affordability to the test. Today, interest rates are at record lows, but what if they rise over the next few years? How would you cope with higher mortgage payments? Basically, the test helps you come face-to-face with the rising costs of being a homeowner.