What is the 2026 mortgage stress test rate?

The greater of (your contract rate + 2 percent) or 5.25 percent benchmark. At a 4.59 percent contract rate, you must qualify at 6.59 percent. At 3 percent contract, you must qualify at 5.25 percent.

GDS (Gross Debt Service) is mortgage + property tax + heat + half condo fees, divided by gross monthly income, capped at 39 percent. TDS (Total Debt Service) adds car loans, credit card minimums, lines of credit and is capped at 44 percent.

Do I need to pass the stress test on a mortgage renewal?

No — as of late 2024, renewing with your existing lender no longer requires the stress test. Switching lenders at renewal still triggers it for federally regulated banks.

What is the minimum down payment in Canada?

5 percent on homes under $500,000. 5 percent on first $500K + 10 percent on the rest, up to $1.5M. 20 percent minimum above $1.5M, with no CMHC insurance available at that level.

Who is exempt from the stress test?

Credit unions not federally regulated. Private lenders and B-lenders. Same-lender renewals as of late 2024. The Big 6 banks always require it for new buyers.

Canada Mortgage Stress Test Calculator (B-20 Rule 2026)

Quick answer

Will I pass the Canadian mortgage stress test in 2026?

Federally regulated lenders qualify you at the greater of (a) your contract rate plus 2 percentage points, or (b) the 5.25 percent benchmark — whichever is higher. You must pass two ratios: GDS (housing costs) ≤ 39 percent and TDS (all debt) ≤ 44 percent of gross monthly income. Since late 2024, renewals at the same lender no longer require the stress test.

Last updated: May 13, 2026 · Source: OSFI Guideline B-20, CMHC underwriting rules 2026

Canada Mortgage Stress Test Calculator

B-20 rule: max mortgage based on stress-tested payment, GDS/TDS limits.

Household gross income (CAD/year)Other monthly debts (car, credit, LOC)Contract rate (percent)Down payment (CAD)Amortization (years)

Will I Pass the Canadian Mortgage Stress Test?

The OSFI B-20 stress test decides how much mortgage you actually qualify for.

The rule: Federally regulated lenders must qualify you at the greater of (a) your contract rate plus 2 percentage points, or (b) the 5.25 percent benchmark rate — whichever is higher.

Two ratios you must pass

GDS (Gross Debt Service): mortgage payment + property tax + heat + half of condo fees, all ÷ gross monthly income, must be ≤ 39 percent.
TDS (Total Debt Service): GDS items + car loans + credit-card minimums + student loans + line of credit payments, ÷ gross monthly income, must be ≤ 44 percent.

Quick example

Household earns $110,000 = $9,167/month gross. Contract rate is 4.59 percent → stress-tested rate = 6.59 percent. With $80,000 down on a 25-year amortization and $450/month in other debts:

Max payment from GDS = $9,167 × 0.39 − ($350 tax/mo) − ($120 heat) = $3,105
Max payment from TDS = $9,167 × 0.44 − $470 − $450 = $3,113
Binding limit: ~$3,105. At 6.59 percent over 25 years that supports a mortgage of about $435,000 → home price around $515,000.

Down payment minimums

Under $500,000: 5 percent
$500K–$1.5M: 5 percent on first $500K + 10 percent on the rest
$1.5M+: 20 percent minimum, no CMHC insurance available
Insured (under 20 percent down) requires CMHC, Sagen, or Canada Guaranty premium added to the mortgage

Who must pass the stress test?

All federally regulated lenders (the Big 6 banks + most credit unions) require the test for both new buyers and renewals if you switch lenders. Sticking with your current lender at renewal — no stress test required as of late 2024.

More tools for Canadians

Reviewed by: Montreal Tips editorial team · Last updated: May 13, 2026

Sources: OSFI Guideline B-20, CMHC underwriting rules 2026. Estimates are educational only — verify against official sources before acting.

Will I pass the Canadian mortgage stress test in 2026?

Canada Mortgage Stress Test Calculator