Sentences with phrase «gds ratio»

The GDS ratio is the share of the borrower's gross household income that is needed to pay for home - related expenses, such as mortgage payments, property taxes and heating expenses.

The GDS ratio is the percentage of pretax monthly household income needed to pay monthly housing costs, which include principal, interest, taxes, heating and half of condo fees.

«Canadians whose monthly housing expenses exceed a maximum GDS ratio of 32 per cent risk overextending themselves and could face challenges in meeting their mortgage obligations, while those who underestimate housing costs may be taken aback by the reality of rising housing costs in Canada,» says John Schipper, president of Mortgage Intelligence.

For example, the highest acceptable GDS ratio that lenders are generally comfortable with is 35 per cent, and in the survey, borrowers averaged only 21.8 per cent.

If your debt ratios are already on the high side (a GDS ratio over 33 percent or a TDS ratio over 38 percent), it may be in your best interest to apply for refinancing sooner rather than later before the new mortgage rules take effect.

If you've secured a pre-approval before, it's likely a mortgage professional has already put your finances to the test using the GDS Ratio.

To qualify for mortgage insurance, the highest allowable GDS ratio is 39 % and the highest allowable TDS ratio is 44 %.

The GDS ratio is calculated against your gross income.

The part of the GDS ratio taken up by property taxes and heating can vary quite a bit, but a rule of thumb is 7 %.

Most lenders will allow you to take on a mortgage with a GDS ratio up to 32 %.

Genworth Canada programs require a GDS ratio of no greater than 39 %.

The TDS and GDS ratios are guidelines.

Well B - Lenders are banks or other financial institutions that offer mortgage products outside the standard guidelines of TDS GDS ratios & credit qualifications.

We have very strict qualifications for mortgages, including TDS and GDS ratios to ensure that consumers have the financial wherewithal to make the payments and similar qualifications based on the credit card limits should apply.»

Not exact matches

* The cost to pay the mortgage, your heat and hydro, the condo fees (if applicable) and property taxes can not exceed more than 32 % of your gross taxable income — this is your Gross Debt Service ratio, or the GDS.

Gross Debt Service Ratio (GDS): The percentage of the borrower's gross monthly income that is used for monthly housing payments (principal, interest, taxes, heating costs, and half of any condominium maintenance fees).

These costs are used to calculate the Gross Debt Service ratio (GDS).

Lenders use your GDS and TDS (total debt service) ratios to assess your mortgage application and to determine how much to loan you and what interest rate to apply.

Currently, lenders use a Gross Debt Service Ratio (GDS) / Total Debt Service Ratio (TDS) calculation to qualify for mortgage financing.

The GDS and TDS ratios defined by the lenders or insurers ensure that you can make the mortgage payment.

When we do, we find a leverage ratio (Debt / EBITDA) that's about three times smaller, a debt to capital ratio that's less than half, and a very high interest coverage ratio, which helps to secure GD a very strong investment - grade credit rating.

They consider your GDS (Gross Debt Service) ratio, plus your TDS (Total Debt Service) ratio for this.

Having a decent GDS and TDS ratio makes the situation favorable and feasible for borrowers and help them evaluate in advance whether or not they are ready for a Canada mortgage at the moment.

The broker will determine your affordability by taking a look at your debt ratios (Gross Debt Service GDS and Total Debt Service (TDS)-RRB-.

One is the Gross Debt Service Ratio (GDS), the other is the Total Debt Service Ratio (TDS).

The first calculation, your Gross Debt Service Ratio (GDS), requires your monthly housing costs (mortgage principal and interest, property taxes, and half of the monthly condo fee if you are purchasing a condominium) should not be more than 32 % -39 % of your gross monthly income.

This principle is known as the Gross Debt Service (GDS) ratio calculation.

-- The vast majority of people who took out their first mortgage last year borrowed less than they could afford to, as their Gross Debt Service (GDS) ratios are far below allowed maximums, even at the higher interest rates that are used to qualifying them for their mortgage.

Why is the Government limiting the maximum gross debt service (GDS) and total debt service (TDS) ratios?