What are the key debt service ratios and qualifying rates lenders use?

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Here's a breakdown of the key ratios and rates:

| Metric               | Description                                                                                               |
|-----------------------|-----------------------------------------------------------------------------------------------------------|
| Gross Debt Service (GDS) | Percentage of gross monthly income for housing costs (mortgage, property taxes, heating).                   |
| Total Debt Service (TDS) | Includes all debt obligations (car loans, credit card payments) in addition to housing costs.           |
| Qualifying Rate       | Rate used to stress test borrowers; the greater of the contractual rate + buffer or a minimum floor rate.   |

What are the key debt service ratios and qualifying rates lenders use?

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What are the key debt service ratios and qualifying rates lenders use?

Key Points

Need a Deeper Breakdown?

Technical Research Verification

Co-Signer vs. Guarantor in Canada: 2026 Mortgage Risk & Eligibility Guide

Related Questions

What's the difference between a co-signer and a guarantor?

How do lenders assess the creditworthiness of co-signers and guarantors?

Income Verification Standards: Renewal Hill Adherence

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