Housing reference
Mortgage Qualification Rules
Stress-test floor, qualifying-rate buffer, GDS, TDS, and lender-specific caveats for mortgage qualification calculators.
CMHC / FCAC / OSFI source-linkedAnnual source check
Current snapshot
Qualification anchors
Stress-test floor5.25%
Stress-test buffer2 percentage points
GDS benchmark39%
TDS benchmark44%
Context
What this reference means
Mortgage qualification calculations compare housing and debt costs with income using a qualifying rate. The stress-test comparison uses a higher qualifying rate than the contract rate when required. Lender, insurer, product, credit, renewal, property, and underwriting rules can differ from the simplified benchmark values shown here.
Reference table
Mortgage qualification values
| Item | Rule or base | Value | Context |
|---|---|---|---|
| Minimum qualifying-rate floor | Stress-test comparison floor | 5.25% | Current OSFI minimum qualifying-rate floor and FCAC stress-test benchmark. Actual lender or insurer policy can differ. |
| Stress-test buffer | Contract rate plus buffer | 2 percentage points | The qualifying rate is commonly modelled as the greater of the floor and the contract rate plus this buffer. |
| Qualifying-rate calculation | Stress-test comparison | Greater of floor or contract rate plus buffer | CMHC, FCAC, and OSFI sources use this comparison for the stress-test rate described here. |
| GDS benchmark | Gross debt service ratio | 39% | CMHC-style benchmark for housing costs compared with gross income. Lender and insurer rules can differ. |
| TDS benchmark | Total debt service ratio | 44% | CMHC-style benchmark for housing plus other debts compared with gross income. Lender and insurer rules can differ. |
| GDS included costs | Housing-cost ratio inputs | Principal, interest, taxes, heat, and applicable condo or site costs | FCAC and CMHC describe housing costs as including mortgage payments, property taxes, heating costs, and 50% of condo fees where applicable. |
| TDS included costs | Housing plus other debts | GDS costs plus other debt obligations | Other debts can include credit cards, car loans, lines of credit, student loans, support payments, and other debt payments. |
| Uninsured straight switches | OSFI renewal exception context | May not require the MQR when no loan amount or amortization increase occurs | OSFI states it does not expect lenders to apply the minimum qualifying rate to uninsured straight switches at renewal when there is no increase to loan amount or amortization. |
| Same-year dollars | Timing convention | Same purchase year | Home price, income, debts, taxes, heating, condo fees, and mortgage assumptions should be entered for the same purchase date or scenario year. |
Notes and assumptions
Mortgage qualification notes are maintained with the source values for this reference.
Official sources