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3 Rules Lenders use to Mortgage You!

Blog by Diane Cardoso | September 27th, 2016

The 3 “rules of lending” focus on determining the maximum size of mortgage that can be supported by your provable income:

Rule #1 - GROSS DEBT SERVICE (GDS) Your monthly housing costs are generally not supposed to exceed 32% of your gross monthly income. 


Rule #2 - TOTAL DEBT SERVICE (TDS) Your entire monthly debt payments should not exceed 42% of your gross monthly income


Rule #3 - CREDIT RATING Everyone who will be on title to the property will need to have their credit run