Canada Mortgage Affordability & Stress Test Calculator 2026
The maximum home price and mortgage your income supports under the 2026 stress test (contract rate + 2% or 5.25%), GDS 39% / TDS 44%, minimum down payment and CMHC premium rules, with your real monthly payment and housing cost.
| Stress-test qualifying rate | — |
|---|---|
| Maximum mortgage (GDS 39%) | — |
| Maximum mortgage (TDS 44%) | — |
| Binding limit and loan | — |
| Down payment check | — |
| CMHC insurance premium | — |
| Monthly payment at your actual rate | — |
| Payment at the qualifying rate (what the bank tests) | — |
| Monthly housing cost (PITH) | — |
| Without the stress test | — |
In short
Canadian lenders qualify you at the greater of your contract rate plus 2% or 5.25% and cap housing costs at 39% of gross income (GDS) and all debts at 44% (TDS) for insured mortgages; a $140,000 household with $60,000 down at a 4.4% rate qualifies for a home of about $643,000 over 25 years, with a 4% CMHC premium added to the loan. Minimum down payment is 5% to $500,000 and 10% to the $1.5 million insured cap.
Who this is for: First-time and repeat buyers sizing their budget before a pre-approval, and anyone checking what the stress test does to their maximum.
How much mortgage can you get in Canada? The stress test, GDS/TDS and CMHC
Every Canadian lender qualifies you at the minimum qualifying rate — the greater of your contract rate plus 2% or 5.25% — not at the rate you will actually pay. At that rate your mortgage payment plus property tax, heating and half of any condo fees must stay within 39% of gross income (GDS), and all debt payments within 44% (TDS) for an insured mortgage; uninsured lenders are often stricter.
- Down payment: 5% of the first $500,000 and 10% of the rest up to the $1.5 million insured price cap; 20% above that. Under 20% the mortgage must be insured.
- CMHC / Sagen / Canada Guaranty premium: 4.00% of the loan with 5–9.99% down, 3.10% with 10–14.99%, 2.80% with 15–19.99% — added to the mortgage, with PST on the premium paid at closing in Ontario (8%), Quebec (9%), Saskatchewan (6%) and Manitoba (7%).
- Amortization: 25 years maximum when insured, 30 years for first-time buyers and new builds (since December 2024) and for conventional mortgages — a longer amortization lowers the test payment and raises what you qualify for.
- Canadian compounding: fixed-rate mortgages compound semi-annually, so the monthly rate is (1 + r/2)^(1/6) − 1 — slightly less than r/12.
- Payment frequency: accelerated bi-weekly payments (half the monthly amount every two weeks) shorten a 25-year amortization by about 3 years.
See also: Land Transfer Tax Calculator — Ontario, Toronto, BC & All Provinces, Canada Take-Home Pay Calculator 2026.
Assumptions
- Qualifying rate = max(rate + 2%, 5.25%); room for the mortgage payment = min(39% GDS, 44% TDS) of monthly income less property tax, heat, 50% of condo fees (and other debts for TDS).
- Maximum insured loan = present value of that payment at the qualifying rate over the amortization (semi-annual compounding); price iterated so the CMHC premium (4.00% / 3.10% / 2.80%) fits inside the loan; down-payment minimums (5% to $500k, 10% to $1.5m, 20% above) cap the price.
- Actual payment at the contract rate; PST on the premium (ON 8%, QC 9%, SK 6%, MB 7%) shown as a closing cost.
Worked example
Qualifying rate 6.40%. GDS: 39% × $11,667 − $375 tax − $150 heat = $4,025 for the mortgage; TDS: 44% − the same − $500 = $4,108 → GDS binds. $4,025 a month at 6.40% over 25 years supports $606,400 of insured loan including the premium, so the price is about $643,100 ($60,000 down = 9.3% → 4.00% premium $23,322 added to the mortgage, plus 8% Ontario PST $1,866 at closing). Actual payment at 4.4%: $3,323 a month; housing cost $3,848 (33% of income). Without the stress test the same income would support about $734,600 of loan — the test cuts borrowing by 17%.
Frequently asked questions
How much mortgage can I get on $100,000 salary in Canada?
Up to about $490,000 at a 4.4% contract rate (6.4% qualifying) over 25 years before property tax and heating — typically $440,000–$470,000 once those are counted — or about $520,000 over 30 years; so a home around $490,000–$580,000 with a 10% down payment and no other debts.
What is the mortgage stress test rate in 2026?
The greater of your contract rate plus 2 percentage points or 5.25%; at a 4.4% mortgage you are qualified at 6.4%. It applies to all federally regulated lenders for insured and uninsured mortgages.
What is the minimum down payment in Canada?
5% of the first $500,000 plus 10% of the amount between $500,000 and $1.5 million (the insured cap); 20% for homes over $1.5 million and for non-owner-occupied purchases.
How much is CMHC insurance?
4.00% of the mortgage with 5–9.99% down, 3.10% with 10–14.99% and 2.80% with 15–19.99% — about $18,000 on a $590,000 loan at 10% down — added to the mortgage; provincial sales tax on the premium is paid at closing in ON, QC, SK and MB.
Can I get a 30-year mortgage in Canada?
Yes — 30-year amortizations are allowed on insured mortgages for first-time buyers and new builds (since 15 December 2024) and on conventional mortgages with 20% down; otherwise insured mortgages are capped at 25 years.
Does the stress test apply when I renew or switch lenders?
Not at renewal with your existing lender; since late 2024 straight switches of insured and uninsured mortgages to a new lender at renewal are also exempt, provided the amount and amortization do not change.
What are GDS and TDS?
Gross debt service = mortgage payment + property tax + heat + half of condo fees as a share of gross income (max 39% insured); total debt service adds all other debt payments (max 44%).
Does the down payment have to be my own money?
At least 5% must come from your own resources or a gift from an immediate family member; borrowed down payments are allowed only in limited cases with a 10% minimum.
Related calculators
Found an error? Report it — tell us the inputs, the result you got, what you expected and the rule or source. Confirmed corrections are published within a week.