Yes. The test runs on the projected figure like any other income.
Yes. A physician program runs the stress test on the projected income figure, not on a resident's current T4. The projected number stands in for income, then the test applies on top of it the same way it would for any salaried borrower.
The qualifying rate is the contract rate plus 2 percentage points, or 5.25%, whichever is higher. That rate sets the payment the lender uses to check the ratios. It is not the rate you pay on the mortgage. It is a hurdle the file has to clear.
In the qualifier examples the tested rate is 6.49% across every stage. The payment calculated at that rate has to fit inside two ratios: 39% gross debt service and 44% total debt service.
The projected income figure itself depends on your stage. First and second year residents and fellows are read at $185,000, flat regardless of specialty. Third year and later residents and fellows are read at $225,000. Final-year residents and physicians within 36 months of completion move to a specialty chart, with unlisted specialties defaulting to $225,000. Past 36 months in practice, projected income no longer applies and actual verified income is used.
| Stage | Who | Projected income |
|---|---|---|
| PGY-1 to PGY-2 | First and second year residents and fellows | $185,000 |
| PGY-3 and later | Third year and later residents and fellows | $225,000 |
| Final year or within 36 months | Final-year trainees and physicians newly in practice | Specialty chart, default $225,000 |
| More than 36 months in practice | Established physicians | Actual verified income |
The second place the qualifying rate shows up: your student debt.
The qualifying rate shows up a second time, on the debt side. Student loans and a professional line of credit count in the debt ratios even when not in repayment, so a balance still sitting idle shows up in the file.
The payment the lender uses is not the real payment. It is calculated at the minimum qualifying rate, 5.25%, over a 15-year amortization, which is 180 months. That manufactured payment is what sits in the total debt service ratio and eats into room.
A $200,000 balance reads as a $1,602 monthly payment inside the ratios. The payment scales with the balance, so a smaller balance produces a smaller counted payment. If the balance is zero, the payment is zero. Nothing owed, nothing counted.
One worked example.
Take a third-year or later resident with projected income read at $225,000 and a $200,000 student balance, putting 10% down on an insured purchase. Both qualifying rates apply at once: the income is tested at 6.49%, and the $200,000 balance is read as a $1,602 payment at 5.25% over 15 years.
With both numbers in the ratios, the file supports a price of $949,620. The mortgage payment used in the test is $4,919 a month, and the student debt payment sitting beside it is $1,602.
| Input | Figure |
|---|---|
| Projected income | $225,000 |
| Student debt | $200,000 |
| Down payment | 10% |
| Qualifying rate on income | 6.49% |
| Student debt payment counted | $1,602 / month |
| Mortgage payment in the test | $4,919 / month |
| Supported price | $949,620 |
Compare that with the same stage and income carrying no student debt and putting 20% down. That file supports a price of $1,280,518. Two things changed between the files, not one: the $1,602 debt payment left the ratios and the down payment went from 10% to 20%, so the gap reflects both the cleared balance and the larger down payment working together.
What you can actually do about it.
Two levers move the result, and each one works on a specific part of the test. Neither is a forecast, and neither changes the qualifying rate itself.
- Pay down student debt. The counted payment scales with the balance, so reducing the balance shrinks the $1,602-style line in the ratios. Clear it entirely and that line reads zero.
- Add a partner's income. A second verified income lifts the income side of the gross and total debt service ratios, which can offset a debt payment that is dragging the file down.
Run your own stage, income and balance through the Physician affordability calculator, then check the projected income you should be read at against the projected-income schedule before you shop for a price.
Sources and dates.
Figures in this guide come from the sources below. Each entry shows the date the source published it, or the date it was accessed when the source does not state one. The page carries a review-by date; after February 2027 treat any number as a starting point and check the source.
Frequently asked questions.
Does the stress test use my resident salary or the projected number?01
It uses the projected income figure for your stage, then applies the stress test on top of it the same as any other income. For a first or second year resident that figure is $185,000, and for third year and later it is $225,000.
What rate will the lender test me at as a resident?02
The contract rate plus 2 percentage points, or 5.25%, whichever is higher. In the qualifier examples the tested rate is 6.49%, and the payment at that rate has to fit inside a 39% gross and 44% total debt service ratio.
Do my student loans count if I am not paying them yet?03
Yes. Student loans and a professional line of credit count in the ratios even when not in repayment. The payment is calculated at 5.25% over a 15-year amortization, so a $200,000 balance is read as $1,602 a month.
What happens to my student debt payment once the balance is paid off?04
The counted payment scales with the balance, so paying it down shrinks the line in your ratios. A zero balance is counted as zero.
What projected income will the program use once I finish training?05
Final-year residents and physicians within 36 months of completion are read off a specialty chart, with unlisted specialties defaulting to $225,000. Past 36 months in practice, projected income no longer applies and actual verified income is used.