Mortgage Affordability & Stress Test – Ontario (2026)

What’s My Next Step?

You’re one step closer to getting approved.

The next step is completing a secure online mortgage application so we can review your credit, income, and existing debts. Once submitted, we compare mortgage rates and terms across multiple lenders to find the best fit for your situation.

As a mortgage agent, we shop the market for you — helping you secure competitive rates while saving you time and money.

👉 Start your Ontario Mortgage Pre-Approval Application today.

How Is Mortgage Affordability Calculated in Ontario?

Our Ontario mortgage affordability calculator estimates your maximum purchase price based on:

• Your gross annual income

• Your down payment

• Your Gross Debt Service (GDS) ratio

• Your Total Debt Service (TDS) ratio

In 2026, most lenders follow standard qualification guidelines of approximately:

• Maximum GDS: 39%

• Maximum TDS: 44%

These ratios measure how much of your income goes toward housing costs and total debt obligations. Some lenders may offer flexibility depending on your credit score and overall financial strength.

If you want to increase your purchasing power, consider:

• Increasing your down payment

• Reducing monthly debt payments

• Improving your credit profile

This calculator gives you a realistic estimate so you can confidently shop within your budget.

What Is the Mortgage Stress Test in Ontario (2026)?

All federally regulated lenders in Ontario must apply the mortgage stress test.

You must qualify at the higher of:

• The Bank of Canada’s minimum qualifying rate (currently 5.25% unless updated), or

• Your contract mortgage rate + 2%

This ensures you can still afford your mortgage payments if interest rates rise in the future.

The stress test applies to:

• Home purchases

• Mortgage refinances

• Most lender switches

It’s designed to protect homeowners from financial strain in changing rate environments.