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Qualifying math

Will this file pass the stress test?

The mortgage stress test qualifies you at the greater of your contract rate + 2% or 5.25%. See whether your GDS and TDS ratios pass at that qualifying rate.

Written & reviewed by
Last reviewed Q2 2026

Start here · Canada

Get a Canada-ready pre-approval file, not a generic quote.

We shape the file to how Canada underwriters actually read it — closing math, lender appetite, and the small regional details that decide the approval.

Inputs

Result

6.79%
Qualifying rate — greater of contract +2% or 5.25%
  • Payment at contract rate$3,435
  • Payment at qualifying rate$4,161
  • GDS47.6% / 39%
  • TDS51.6% / 44%
Exceeds federal qualifying ratios

The qualifying-rate payment is the number lenders underwrite against. If GDS or TDS exceeds the cap at that rate, either the mortgage amount drops or you need additional income, lower debt, or a credit-union (provincially regulated) option that uses its own qualification rules on uninsured deals.

Leverage moves

  • Paying down $400/month of debt typically frees up ~$70K of mortgage qualification.
  • Extending amortization from 25 to 30 years lowers the qualifying payment and may pull a borderline file into range.
  • Adding documented co-applicant income changes both GDS and TDS instantly.

Ready when you are

Turn this number into a pre-approval file.

The math is the easy part. The approval hinges on how the file is packaged — income, down payment source, credit, and property notes underwriters actually read.