When you take all into account you will have to have your finances in order. Let’s take a look at what most financial institutions will require from you.
Reputable lenders will expect your monthly housing expenses (mortgage payment including taxes) along with any applicable condominium maintenance fees not exceed 30% of the gross family income. The 30% is Considered your Gross Debt Service (GDS) ratio depending on the variable some lenders will let this amount go upto 35% of the family income.
This not the only formula used in qualifying you for a mortgage. A second Calculation is used its called the (TDS) or Total Debt Service ratio. This ratio requires that no more than 40% of your gross family income be used when calculating the amount available for mortgage payments, taxes and other fixed monthly expenses.
Fixed monthly expenses are the commitments you incur every month including, auto, personal loans, as well as credit card accounts. The 40% calculation will vary from different lenders
If you have not been to see a lender you may consider a Mortgage Broker who will work directly on your behalf with over 50 lenders to find you the best rate and Mortgage possible for your circumstances, Rob…
Mortgage Calculator Mortgage Broker
This message is not intended to solicit those already under contract
