How do condo fees exactly impact GDS/TDS calculations?
Standard CMHC and B-20 guidelines state that 50% of the monthly condo fee must be included in the GDS/TDS calculation.
For example, if the fee is $600/month, the lender adds $300/month to your carrying costs. Heat and water are often included in condo fees, which is why lenders only take 50% (assuming the other 50% covers utilities which are already part of GDS).
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Related Questions
How does mortgage insurance enable lower down payments?
Mortgage insurance lowers the risk for lenders, allowing them to offer mortgages to borrowers with down payments between 5% and 20%.
How will lenders evaluate my debt service ratios, and what key factors are considered?
Lenders assess your ability to repay the mortgage by calculating your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios.
What property considerations impact my mortgage application?
Lenders carefully assess the property's value and characteristics, directly influencing the loan amount you can secure.
How does the 'straight switch' exemption benefit you at renewal?
The 'straight switch' exemption lets uninsured mortgage borrowers move their mortgage to a new federally regulated lender (FRFI) at renewal without needing to pass the Minimum Qualifying Rate (MQR) .