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I am sure this has already been explained before but as I don't remember what it's called, I am hoping someone here will know. When you approach the bank for a mortgage they do some sort of basic calculation to figure out if you can afford the mortgage...apparently the % should be no more than 40% or something. What the heck is that calculation called and how does it go again?

Other than your credit report and account history, is that all that lenders use to make a decision on lending you the money?

I went through this once before but it has been a few years and I forget some of the details now.
 

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The *names* of the ratio you are looking for are the Gross Debt Service Ratio (the 32% one) and the Total Debt Service Ratio (the 40% one). :D
 
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