Debt Service Calculator: GDS, TDS and the Stress Test
Lenders compare your housing costs (GDS) and all your debt payments (TDS) with your gross income, using the stress-test rate rather than your actual rate.
Lenders test a mortgage at the higher of your rate plus 2 points or 5.25%. In the example, a $480,000 loan at 4.29% is tested at 6.29%, which puts GDS at 39.54% and TDS at 43.36%. CMHC's limits are 39% and 44%.
Figures as of 2024-11-21.Mortgage stress test calculator
Rules as of
- GDS at the qualifying rate
- 39.54%
- limit 39%
- TDS at the qualifying rate
- 43.36%
- limit 44%
- Payment you'd actually make
- $2,600.92
- Payment the lender tests
- $3,154.30
- Income needed to pass
- $111,517
- Largest mortgage that passes
- $472,498
You don't pass yet: 6.29%
Assumptions & sources
Assumptions
- Engine: MITEY calc engines, tool “stress-test”, rules as of 2024-11-21.
- This question's home in the MITEY network is mortgagestresstestcalculator.ca.
- Estimates for education, not advice. Confirm with your lender, lawyer or the agency named in the sources.
Sources
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- OSFI — OSFI exempts uninsured mortgage straight switches from prescribed MQR; implements portfolio LTI limits (effective November 21, 2024). Checked .
- Department of Finance Canada — Statement on the Canadian housing market (insured MQR; switching at renewal) (effective December 12, 2023). Checked .
- CMHC — Calculating GDS / TDS. Checked .
Your saved scenarios
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| Gross income (yearly) | $110,000 |
|---|---|
| Other debt payments (monthly) | $350 |
| Mortgage amount | $480,000 |
| Contract rate | 4.29% |
| GDS at the qualifying rate | 39.54%limit 39% |
| TDS at the qualifying rate | 43.36%limit 44% |
| Payment you'd actually make | $2,600.92 |
| Payment the lender tests | $3,154.30 |
| You don't pass yet | 6.29% |
Open this example in the calculator →Computed 2024-11-21.
If TDS is the problem, paying off a small loan can do more than a bigger down payment. The payoff-to-qualify tool on MortgageApprovalTips.com tests which debt to clear first.
What this means for you
- Whichever ratio is closer to its limit sets how much you can borrow.
- Card and line-of-credit balances on your credit report count as a monthly payment even if you clear them every month, so paying them down before you apply helps.
Go deeper on a MITEY specialist site
Frequently asked questions
What are GDS and TDS?
Gross debt service (GDS) is your mortgage payment, property tax, heating and half of any condo fees as a share of gross monthly income. Total debt service (TDS) adds every other debt payment. CMHC's limits for insured mortgages are 39% GDS and 44% TDS.
Why is the payment the lender tests higher than mine?
OSFI's minimum qualifying rate requires federally regulated lenders to test you at the greater of your contract rate plus 2 percentage points or 5.25%. Insured mortgages are tested the same way.
Do I need to pass the stress test at renewal?
Not when you renew with the same lender, and since November 21, 2024 not for an uninsured straight switch to another lender with the same amount and amortization.
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