How This Calculator Works

This tool applies the same stress-test formula lenders use when underwriting rental income properties in Ontario.

It calculates your Net Operating Income (rent minus operating expenses), then subtracts the mortgage payment at the qualifying rate to show whether the property generates a surplus or a deficit.

The qualifying rate is higher than the rate you’ll actually pay - that’s the stress test. If a property passes at this rate, it will almost certainly cash-flow at your actual rate.

Results are shown for two scenarios: 100% financed (worst case, no down payment credit) and 80% financed (standard 20% down payment).

What’s Built Into the Math

• Mortgage: Semi-annual compounding at 6.55% qualifying rate (1-4 units) or 7.05% (5+ units), 30-year amortization. Two scenarios shown: 100% LTV and 80% LTV.
• Operating expenses: 5% vacancy and bad debt, 3% management fee, $500/door/year maintenance, insurance assumed at $1,200 (1-4 units), $1,800 (5-6 units), or $2,400 (7+ units).

This is a conservative approximation designed to give you a quick pass/fail signal - not a full underwriting. For a complete analysis with your actual down payment, rate, and financials, book a call.