BC Mortgage Payment and Stress Test Calculator
Your payment, the rate you actually have to qualify at, and the CMHC premium if you are putting down less than 20%. Compounded semi-annually, the way Canadian mortgages really work.
Semi-annual compounding · verified 1 October 2026
Not an approvalThe rate you qualify at, not the rate you pay
The stress test
Whatever rate your lender offers, a federally regulated lender must qualify you at the minimum qualifying rate: the greater of your contract rate plus 2%, or 5.25%. A mortgage offered at 4.29% is assessed as though it were 6.29%. That higher payment is what gets measured against your income — not the payment you will actually make.
One exception is worth knowing. On a straight switch from one federally regulated lender to another at renewal, the lender is not expected to apply the qualifying rate, provided there is no increase to the loan amount or the amortization period.
Your income has to carry the qualifying payment inside two ratios: GDS at 39%, which counts the mortgage, property tax, heat and half of any strata fee, and TDS at 44%, which adds every other debt payment you have.
Minimum down payment
| Purchase price | Minimum down |
|---|---|
| $500,000 or less | 5% |
| Above $500,000 | 5% of the first $500,000, then 10% |
| At or above the insurable ceiling | 20% |
There are two insurable ceilings and most online calculators only know one. Mortgage insurance is available where the price is below $1,500,000 and you are putting down less than 20%. Where you are putting down 20% or more the insurable limit is below $1,000,000 — which rarely bites, because at 20% down you do not need insurance.
The 30-year amortization is a different product
This is the detail that trips people up. A standard insured mortgage is capped at 25 years. Thirty years exists only through a separate programme, CMHC Home Start, and only when you are putting down less than 20% and you are either a first-time buyer or buying a newly built home. It also carries higher premiums — 4.20% rather than 4.00% at the top band. A calculator that lets you pick thirty years without changing the premium is understating what the mortgage costs.
CMHC premium rates
| Loan-to-value | Standard | Home Start |
|---|---|---|
| Up to 65% | 0.60% | — |
| 65.01–75% | 1.70% | — |
| 75.01–80% | 2.40% | — |
| 80.01–85% | 2.80% | 3.00% |
| 85.01–90% | 3.10% | 3.30% |
| 90.01–95% | 4.00% | 4.20% |
The premium is a one-time charge on the loan amount and can be added to the mortgage rather than paid in cash. In British Columbia there is no provincial sales tax on the premium — that applies in Quebec, Ontario and Saskatchewan only.
Why this differs from an American calculator
Canadian fixed-rate mortgages are compounded semi-annually, not in advance. The effective monthly rate is the semi-annual rate converted, not the annual rate divided by twelve. The difference on a North Shore mortgage is real money over the term, and it is why a US-built calculator gives you a slightly wrong figure.
Questions people actually ask
What is the mortgage stress test in Canada?
Federally regulated lenders must qualify you at the minimum qualifying rate: the greater of your contract rate plus 2%, or 5.25%. A mortgage offered at 4.29% is assessed as though it were 6.29%, and that higher payment is what gets measured against your income.
Can I get a 30-year amortization in Canada?
Only in specific circumstances. A standard insured mortgage is capped at 25 years. Thirty years is available through CMHC Home Start, and only when you are putting down less than 20% and you are either a first-time buyer or buying a newly built home. It also carries a higher insurance premium — 4.20% instead of 4.00% at the top band.
How much down payment do I need in BC?
5% on a purchase price of $500,000 or less. Above that, 5% of the first $500,000 plus 10% of the balance. At $1,500,000 or more, mortgage insurance is unavailable, so 20% is effectively the floor.
What are the GDS and TDS limits?
39% and 44%. GDS counts the mortgage, property tax, heat and half of any strata fee. TDS adds every other debt payment you carry.
Why does this give a different number from an American calculator?
Canadian fixed-rate mortgages compound semi-annually, not in advance. The effective monthly rate is the semi-annual rate converted, not the annual rate divided by twelve. A US-built calculator divides by twelve and gives a slightly wrong figure.
The other calculators
Sources, named and dated
This calculator is an estimate for planning only and is not financial advice or a mortgage approval. Payments assume semi-annual compounding not in advance, and assume the rate holds for the full amortization, which it will not — your rate is fixed only for the term. Premium rates and qualifying rules are those published on the dates cited above and change without notice. Get a written pre-approval from a licensed mortgage professional before making an offer. Tom Jahed, REALTOR®, Personal Real Estate Corporation, Vanak Realty.