Calculations are estimates only and do not constitute financial advice. Actual rates, fees, and eligibility may vary by lender. Always consult a licensed mortgage professional.
Calculations are estimates only and do not constitute financial advice. Actual rates, fees, and eligibility may vary by lender. Always consult a licensed mortgage professional.
OSFI qualifying rate: max(contract + 2%, 5.25%). GDS ≤ 39%, TDS ≤ 44%.
Enter 0 if not a condo
Car loans, credit cards, student loans
FAIL
Ratios exceed OSFI limits
Contract Payment
AED 3,930
At 5.5%
Stress Test Payment
AED 4,730
At 7.5% (qualifying rate)
GDS Ratio
52.96%
Fail (max 39%)
TDS Ratio
57.96%
Fail (max 44%)
Since January 2018, OSFI's B-20 guideline requires all federally-regulated lenders to qualify borrowers at a 'stress test' rate — higher than your actual contract rate. This ensures you can still afford payments if rates rise. The qualifying rate is the higher of: your contract rate + 2%, or the Bank of Canada's benchmark rate (currently 5.25%).
Even if you have a 20%+ down payment, the stress test still applies at federally-regulated institutions. This means you qualify for less than you could actually afford at today's rates, which acts as a buffer against future rate increases.
The stress test uses two ratios: GDS (Gross Debt Service) which must be 39% or below, and TDS (Total Debt Service) which must be 44% or below. GDS includes mortgage payment, property tax, heating, and 50% of condo fees. TDS adds all other monthly debt obligations on top.