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Will you pass the mortgage stress test?

Lenders qualify you at the higher of your rate plus 2% or 5.25% — then check your debt ratios. See where a specific mortgage lands before you apply.

Amortization

GDS must be ≤ 39% and TDS ≤ 44%. Half of condo fees count toward housing costs, per lender convention.

Stress-test result
Pass
Qualifying rate 6.49% · qualifying payment $3,480/mo
37.7%
GDS ratio (limit 39%)
43.2%
TDS ratio (limit 44%)
$2,875
Actual payment at contract rate
$605
Stress-test buffer /mo
What the ratios mean

GDS (Gross Debt Service) is your housing costs — qualifying mortgage payment, property tax, heat and half of condo fees — as a share of gross income. TDS (Total Debt Service) adds your other debt payments. Federally regulated lenders cap these at 39% and 44%. If you're over, a longer amortization, more down, or clearing a debt can bring you back onside.

If you're close to the line

Ratios are one lender's view, not all.

Limits, income treatment and overlays vary by lender. A licensed mortgage professional knows which lenders fit your file and how to structure it to qualify.

What a licensed mortgage professional does
  • Matches your file to the right lender
  • Structures it to pass

Illustrative estimate using the federal qualifying rate (higher of contract rate + 2% or 5.25%) and standard GDS/TDS limits (39%/44%) with 50% of condo fees. Lenders apply their own income verification, debt treatment and overlays, and uninsured/insured rules differ. Confirm with a licensed mortgage professional. Not an offer of credit.