What the stress test lets you borrow today — and the scenario sales centres never model: a low appraisal on closing day.
%
You could qualify for up to
$963,000
Tested at 6.39% — the greater of 5.25% or your rate + 2%. Assumes ~0.95% property tax and $120/month heating.
- Gross debt service limit
- 39%
- housing costs ÷ income
- Total debt service limit
- 44%
- all debts ÷ income
Pre-construction twist: you qualify twice — a pre-approval when you sign, and the real mortgage 60–120 days before closing, at whatever rates and rules apply then. Leave room.
Closing stress test
You signed at today’s price. The lender values the home at closing. If values fall in between, the difference comes out of your pocket.
Appraisal comes in lower by10%
- Price owed to the builder
- $1,049,990
- Lender’s appraisal
- $944,991
- Mortgage the lender will advance
- $800,991
- Cash you need on closing (before closing costs)
- $248,999
- Cash you have
- $160,000
Shortfall
$88,999
You’d need to find this before closing — or risk losing your deposits and being sued for the difference.
At this price your qualifying payment would be $5,678/month and your actual payment $4,564/month. Estimates only — speak with a mortgage professional before you sign.