Merriam Webster

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A description of terms and details of parameters used with the Canada Mortgage calculators.

Condo Fees		How utilized in calculating required incomes
Down Payments		Parameters used for Canada Mortgage conventional financing calculator.
DS Ratios		Understanding Debt Service Ratios
Insurance Fees		for High Ratio Mortgages
Household Income		Determining qualifying income levels
% Interest		The default mortgage interest rates for our calculators
Investment		Investment Mortgages
Loan / Value		Loan to Value Ratio
Property Tax		Property Tax usage in Canada Mortgage Calculators
Rate Survey		Canada Mortgage's interest rate survey

Debt Service Ratios

Gross Debt Service Ratio

The GDSR is the ratio of All Shelter Costs divided by Gross Income. Your lender or mortgage insurer will set an upper limit on this value.

Shelter costs include :

• Mortgage principal and interest payments
• Property tax payments
• Condominium maintenance fee payments
• Utility costs (in some areas)

Gross income is all periodic income before taxes. Rental and investment income is often treated separately and this treatment varies between lenders.

 

Total Debt Service Ratio

The TDSR is the ratio of All Shelter and Non-Shelter financial obligations divided by Gross Income. Your lender or mortgage insurer will set an upper limit on this value.

Non-Shelter obligations may include :

• Personal loan payments
• Student loan payments
• Vehicle loan/lease payments
• Credit card payments
• Non primary residence ownership costs
• Alimony
• Any recurring financial obligations