How Much Mortgage Can You Afford Using GDS and TDS
This summary explains two lender benchmarks, the Gross Debt Service ratio and the Total Debt Service ratio, to gauge housing affordability. It notes GDS typically should stay at or below 32 percent of gross monthly income and illustrates with a $5,000 gross monthly income the target housing costs are about $1,600 per month.
How much mortgage can you afford and TDS guidance
A financial column explains the Total Debt Service ratio and how to compute affordable monthly debt. It notes lenders prefer a TDS around 37 to 40 percent of gross income, outlines CMHC insurance for high down payments, and suggests amortization choices, extra payments, and prepayments to cut costs, urging consultation with a financial advisor.
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