your budget to its limit. Remember that you also need money for:
-closing costs -moving costs -ongoing maintenance costs
STAYING WITHIN YOUR BUDGET You need to prove to your lender that you can afford to repay the requested amount. This is an eligibility criterion. Mortgage lenders and mortgage brokers use your financial information to calculate your monthly housing costs. They also calculate your total debt load. Lenders and brokers consider information such as -your income (before taxes -your expenses (including utilities and living costs) -the amount you’re borrowing -your debts TOTAL MONTHLY HOUSING COST Your total monthly housing costs shouldn't be more than 39% of your gross household income. This is the gross debt service (GDS) ratio. You may still qualify for a mortgage even if your GDS ratio is slightly higher. However, you’re increasing the risk of taking on more debt than you can afford. Your monthly housing costs include -your mortgage payment -your property taxes -your heating cost -50% of your condo fees (if applicable) TOTAL DEBT LOAD Your total debt load shouldn't be more than 44% of your gross income. This includes your total monthly housing costs plus all -your credit report and sco -the amortization period
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