See your qualifying rate under the mortgage stress test, your GDS and TDS ratios, and the most you could borrow on your income.
A year, before tax
A month
A month
Payments a month
You pass the stress test
6.5%
Your qualifying rate: the higher of your rate plus 2% and 5.25%
What this means
Lenders check you could afford the payments at 6.5%: $3,014 a month, against $2,491 at your actual rate. On your income, the most you’d qualify for is about $466,541.
You’re within both limits, so the stress test shouldn’t stop you. Lenders also check your credit and the property.
| At your rate (4.5%) | $2,491 |
| At the qualifying rate (6.5%) | $3,014 |
| The most you’d qualify for | $466,541 |
On $110,000 of income, a $450,000 mortgage at 4.5% over 25 years:
| Amount | |
|---|---|
| Qualifying rate | 6.5% |
| Payment at your rate | $2,491 |
| Payment at the qualifying rate | $3,014 |
| GDS (limit 39%) | 37.8% |
| TDS (limit 44%) | 41.1% |
Last updated
The higher of your mortgage rate plus 2% and 5.25%. At a 4.5% rate, you must qualify at 6.5%.
GDS is your housing costs (mortgage, property tax, heating) as a share of income: up to 39% for insured mortgages. TDS adds your other debt payments: up to 44%.
Not if you stay with your lender. Since November 2024, you also don’t need to pass it again to switch lenders at renewal without borrowing more.
Borrow less, pay down car loans or cards, add a co-borrower’s income, or wait for a bigger down payment.