Affordability
Calculator
See exactly what your monthly payment looks like at different price points. 3-year fixed rate, real CMHC insurance costs included.
Your Numbers
Adjust to see real-time results
3-Year Fixed
Qualifying at 6.00%
Max 30 years
Car, loans, cards
Your Monthly Payment
Mortgage only, before property tax and heating
Payment Breakdown
Full Monthly Housing Cost
GDS Ratio
Guideline: under 39%
PASS
TDS Ratio
Guideline: under 44%
PASS
What is the Mortgage Stress Test?
Under Canada's federal lending rules (OSFI Guideline B-20), every borrower must prove they can afford their mortgage at a qualifying rate that's higher than the rate they'll actually pay. This applies to all federally regulated lenders operating in Ontario and across Canada.
How the qualifying rate is calculated
The bank takes your contract rate (the rate you negotiate, shown above as your interest rate) and adds 2% on top. If that number is below 5.25%, the bank uses 5.25% instead. The higher of the two becomes your qualifying rate.
Contract Rate
4.00%
What you pay
2%
Stress buffer
Qualifying Rate
6.00%
What the bank tests
Your GDS and TDS ratios above are calculated using this qualifying rate, not your actual payment. This means you need to qualify for a higher payment than what you'll actually owe each month. The stress test exists to make sure you can still handle your mortgage if rates go up during your term.
CMHC Insurance
Required when your down payment is under 20%. The premium is added to your mortgage and ranges from 2.8% to 4.0% of the loan amount depending on your down payment.
GDS Ratio
Gross Debt Service ratio measures your housing costs against income. Lenders want this under 39%. Calculated using the stress test qualifying rate, not your actual mortgage rate.
TDS Ratio
Total Debt Service adds all your other debts (car payments, credit cards, loans) on top of housing costs. Lenders want this under 44% of your gross monthly income.
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