Under Canada’s B-20 stress test, you must qualify for a mortgage at a higher rate than the one you will actually pay — your contract rate plus 2%, or 5.25%, whichever is higher. That higher qualifying rate can shrink the mortgage you can get, even if the payment at your real rate fits your budget. Use the calculator below to see the payment at both rates and what the stress test does to your buying power.
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Common questions
What is the mortgage stress test?
Under the federal B-20 rules, lenders must check that you could still afford your payments at a qualifying rate — the greater of your contract rate plus 2%, or the 5.25% federal floor.
Why does it matter if I can afford the payment?
Because you are qualified on the higher payment, not the payment you will actually make. That can lower the maximum mortgage you qualify for, even when the real payment fits your budget.
What if I do not pass the stress test?
You may need a lower purchase price, a larger down payment, a longer amortization where eligible, or lower monthly debts. A broker can run your actual file to see which option helps most.
Is this a pre-approval?
No. This is an estimate only, not a pre-approval or an offer. A real pre-approval reviews your actual income, debts and down payment documents.
Prefer to talk? Call Travis Bannert at 780-720-8240 or book a call.
Also try: How Much Mortgage Can I Afford?, Renewal Comparison Calculator, Mortgage Renewal Countdown Calculator and What a Rate Change Does to Your Payment.