debt service ratios

Debt service ratio

How much can I afford?
 
If you are planning on qualifying for a mortgage you can calculate your own debt service ratios.

Gross debt Service

Total Debt Service
 
What are these ratios?
 
To determine a borrower’s affordability lenders calculate the total debt service ratios.
 
The GDS is a measure of how much a borrower’s income, goes to paying the home expenses.  It is a quick way to determine if a borrower is already over extended.

GROSS DEBT SERVICE

To calculate this, add the mortgage payment and property taxes and divided it by income..  It determines the % of your income allocated to these single factors. If it is a condo add 50% of condo fees.

TOTAL DEBT SERVICE

To calculate, add all the housing expenses and add all other debt payments.. 
 
Use our affordability calculator to determine either your GDS or TDS
 
Stress Test
 
Effective November 2020, the qualifying rate for insured mortgages is at 4.79%.  Conventional mortgage still qualify based on the contract rate amount.

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