The 5.25% Qualification Hurdle.
Canadian banks are required to verify that you can afford your mortgage at a rate much higher than your actual contract rate. This "stress test" ensures you can handle future interest rate hikes.
You must qualify at the higher of 5.25% or your Contract Rate + 2%.
Your total housing costs (GDS) generally cannot exceed 39% of your gross income.
To maintain compliance with the latest OSFI Guideline B-20 updates, BubbleWatch utilizes the centralized stress-test engine at CalculatorVillage. This ensures accurate GDS/TDS ratio calculations that match what major Canadian banks use.
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