Mortgage loan calculation
To be eligible for a mortage loan, two calculations are used. Firstly;
- The
Gross Debt Service Ratio (GDS) should not be higher than
32%. This is the ratio of your gross household income to your mortgage
payment, taxes and energy costs as well as half of condominium fees where
applicable.
- The Total Debt Service Ratio (TDS) is 40%. This calculation
is necessary if you have other debt obligations in addition
to the mortgage loan (car loan, credit cards, line of
credit, etc). This is the ratio of your gross household
income to the mortgage loan, taxes, energy costs and other
loans (car loan, credit cards, line of credit, etc).
- Generally
speaking, you should not exceed any of the above ratios.
- You may however still be eligible even if you exceed or think you
exceed these ratios (case by case). Please contact me for additional information.
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