Qualifying rate: 6.04% · Minimum down payment: $50,000 (7%) · Required gross income: approximately $197,625/year. CMHC eligible at this price range.
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The Canadian mortgage stress test requires all new mortgage applicants to qualify at a rate 2% above their contract rate, with a minimum qualifying rate of 5.25%. For a $$700K–$800K purchase at today's contract rate of approximately 4.04%, the qualifying rate is 6.04%.
The stress test applies to purchases, refinances, and lender switches. Straight renewals at the same lender are exempt.
| Item | Amount |
|---|---|
| Representative purchase price | $750,000 |
| Minimum down payment (7%) | $50,000 |
| Mortgage amount | $700,000 |
| Contract rate (broker floor) | 4.04% |
| Stress test qualifying rate | 6.04% |
| Monthly P&I at qualifying rate (25yr amort) | $4,495 |
| Annual PITH (P&I + tax + heat) | $63,240 |
| Required gross income (32% GDS) | $197,625 |
| CMHC eligibility | Eligible — 4% premium ($28,000 added to mortgage) |
The qualifying income figure above is calculated using the federal Gross Debt Service (GDS) ratio of 32%. This means your total annual housing costs — principal, interest, property tax, and heat (PITH) — cannot exceed 32% of your gross annual income.
For a $700K–$800K home in Quebec with the assumptions above:
Annual P&I at qualifying rate: $53,940 + property tax (estimate: $7,500/yr) + heat (estimate: $1,800/yr) = total PITH of $63,240/yr.
At 32% GDS: $63,240 ÷ 0.32 = $197,625.
This is an estimate. Your lender will use your exact balance, amortization, property tax assessment, and may apply a Total Debt Service (TDS) ratio (maximum 44%) if you have other debt obligations. Actual qualifying income may differ.
Quebec charges droits de mutation (Welcome Tax) on all real estate transfers, collected by the municipality.
For a $700K–$800K home in Quebec at a representative price of $750,000, estimated land transfer tax is approximately $10,741. Total closing costs including legal fees and title insurance are approximately $15,241.
Budget your total required funds as: down payment ($50,000) + closing costs (~$15,241) = approximately $65,241 in available funds at closing.
A $700K–$800K home in Quebec at $750,000 with 7% down is eligible for CMHC mortgage default insurance. The CMHC premium is 4% of the mortgage amount ( $28,000), which is added to your mortgage principal at closing.
CMHC insurance allows you to purchase with less than 20% down. The premium cost is typically recovered within a few years through the benefit of entering the market earlier than saving a full 20% down payment — though this depends on individual circumstances.
Based on the 2026 stress test rules, a $700K–$800K home in Quebec at approximately $750,000 requires approximately $197,625 in gross annual household income. This assumes a 7% down payment and a 32% GDS ratio. Your lender calculates your exact figure.
The qualifying rate is 6.04% — your contract rate of approximately 4.04% plus 2%, with a minimum of 5.25%.
A $700K–$800K home in Quebec with 7% down is CMHC-eligible. The premium is 4% of the mortgage amount, added to your principal.
For a representative $700K–$800K purchase in Quebec at $750,000, estimated closing costs are approximately $15,241 (land transfer tax ~$10,741 + legal fees ~$3,000 + title insurance ~$1,500). Budget your down payment plus closing costs for total funds required at closing.