Image of the pink square with a house and a dollar-sign Mortgage Qualifier Tool

From Financial Consumer Agency of Canada

This calculator helps you determine whether or not you can qualify for a home mortgage based on income and expenses.

Mortgage stress test

To qualify for a mortgage loan at a bank, you will need to pass a “stress test”. You will need to prove you can afford payments at a qualifying interest rate which is typically higher than the actual rate in your mortgage contract.

You need to pass this stress test even if you don’t need mortgage loan insurance.

Credit unions and other lenders that are not federally regulated do not need to use this mortgage stress test.

Banks must use the higher interest rate of either:

  • 5.25%
  • the interest rate you negotiate with your lender plus 2%

Enter the highest of the two rates above in the field Annual interest rate to determine if you can pass the stress test.

If you already have a mortgage, you’ll need to pass this stress test if you:

  • refinance your home
  • switch to a new lender, or
  • take out a home equity line of credit

Property Information


Your Income and Anticipated Expenses


FCAC uses a Gross Debt Service (GDS) ratio of 32% and a Total Debt Service (TDS) ratio of 40% in this tool as a guideline. You may still qualify for a mortgage even if your GDS and TDS ratios are slightly higher. However, higher GDS and TDS ratios mean that you are increasing the risk of taking on more debt than you can afford.

Congratulations! You will likely qualify for the mortgage amount required.

You will likely be approved for a mortgage amount of $200,000.00 since your GDS ratio (30.84%) does not exceed 32.00% and your TDS ratio (39.84%) does not exceed 40.00%.
Mortgage Required
Request Amount$200,000.00 ($250,000.00 - $50,000.00)
Mortgage Loan Insurance Premium$0.00 ($200,000.00 * 0.00%)
Total Mortgage Amount Required$200,000.00

Read on below about GDS (Gross Debt Service) & TDS (Total Debt Service) ratio calculations to find out how your qualification for this mortgage was determined.

GDS Ratio Calculation
Mortgage Payment   $1,191.84/month
Heating Cost + $150.00/month
Property Taxes + $200.00/month
GDS Ratio Cost = $1,541.84/month
Gross Income ÷ $5,000.00/month
GDS Ratio = 30.84%  Your GDS ratio is acceptable - it is under 32.00%.
TDS Ratio Calculation
GDS Ratio Cost   $1,541.84/month
Credit Card / Line
of Credit Payments
+ $100.00/month
Car Payments + $350.00/month
Other Debt Payments + $0.00/month
TDS Ratio Cost = $1,991.84/month
Gross Income ÷ $5,000.00/month
TDS Ratio = 39.84%  Your TDS ratio is acceptable - it is under 40.00%.

Based on your GDS and TDS ratios, you could qualify for a mortgage with a maximum amount of $201,369.98, or a home with a maximum cost of $251,712.48 - assuming that your down payment would be the same percentage as what you entered in the calculator (20.00%).

Moreover, based on values you entered a summary report can be produced. The report includes all your input values, the qualification results, payment schedule as well as a list of other things to consider before applying for a mortgage. You may print the report and bring it with you when you visit the mortgage lender.

We offer this mortgage calculator as a self-help tool for your use. This tool does not replace professional financial advice. We cannot guarantee that this calculator will apply or be accurate in your situation. For example, your mortgage lender may make its calculations in a different way. All calculations are examples only.
Date modified: