Posted on: 06th Oct, 2008 02:16 pm
Do lenders allow 40% + Total Debt Service ratio and and 32%+ Gross Debt Service? Internet seems to show it as a benchmark that all lenders follow, but its hard to believe.
What are the actual ceilings lenders go for?
sorry for the previous post, forgot to login: http://www.mortgagefit.com/know-how/about14275.html
What are the actual ceilings lenders go for?
sorry for the previous post, forgot to login: http://www.mortgagefit.com/know-how/about14275.html
Hi ivan,
Welcome to our forums.
The standard total debt service ratio and gross debt service ratio shouldn't exceed 40% and 32% respectively. However, there can be minor variations in your TDS and GDS ratios from the standard figures, which lenders in Canada may approve of when it comes to offering a loan. By the way, tell us more about your situation, so that we can give you some better suggestions.
Good luck
Welcome to our forums.
The standard total debt service ratio and gross debt service ratio shouldn't exceed 40% and 32% respectively. However, there can be minor variations in your TDS and GDS ratios from the standard figures, which lenders in Canada may approve of when it comes to offering a loan. By the way, tell us more about your situation, so that we can give you some better suggestions.
Good luck
i just answered the 32/40 question on the other post...(shaking my head).
what is this canadian aspect of the question?
what is this canadian aspect of the question?
hey! Thanks for your helpful feedback. I am writing an article, so I needed some input from professionals.
That was me in another post George ))) Forgot to log in.
That was me in another post George ))) Forgot to log in.
That is the general guideline, but there are compensating factors that would get an approval with higher ratios.