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Buying A Home

You Can Afford

How Much Can I Qualify For?

Most lenders rely on two basic formulas, which are the Gross Debt Service (G.D.S.) and Total Debt Service (T.D.S.) Ratios.

  • The G.D.S. Ratio: Up to 35%* of the total gross income (before tax) for the mortgage principal and interest, property taxes, estimated heating costs, plus 50% of any maintenance fees.
  • The T.D.S. Ratio: Up to 42%* of the total gross income (before tax) towards the mortgage, property taxes, estimated heating cost, and 50% of any maintenance fees PLUS other debts and obligations. These debts and obligations could be car loans, lines of credit, credit cards with outstanding balances, personal loans, auto leases, furniture and appliance loans, etc.
  • *: When the credit rating of the applicant(s) is greater than 700 FICO score, many lenders will allow higher percentages for the G.D.S. (39%) and T.D.S. (44%) thus allowing a higher amount of mortgage to qualify for.

What is a Realistic Purchase Price I Should Look At?

What we think we can afford and what lenders thinks we can afford are often two different things. Everyone’s lifestyle is different, but lenders and insurers have established some general affordability guidelines. Use our Mortgage Calculator, Compare Mortgages or Request A Call Back from a Homefund Mortgage Broker to provide you with the right information.

"We trusted Homefund with their advice, and we live comfortably now"

Let Us Calculate It For You:

The G.D.S and T.D.S ratios are not the only thing considered in the approval process. I good credit rating, the amount of down payment and employment stability are important details. A mortgage specialist at Homefund will be pleased to work out your specific qualification. We work with many different lenders who offer different mortgage products with particular guidelines. Let us calculate it all for you, for free!