Lenders look at two ratios before they approve a mortgage. GDS — gross debt service — is the share of your gross income that goes to housing costs: your mortgage payment, property tax, heating, and condo fees if you have them. Lenders generally look for no more than 39%. TDS — total debt service — adds all your other monthly debts, like car loans and credit card payments, and lenders generally look for no more than 44%. This calculator uses those limits, along with the federal stress test, to estimate the home price you could qualify for.
Want this breakdown run on your real numbers?
Get a free pre-approval check run on your real numbers, or call 780-720-8240.
Common questions
What is GDS?
Gross debt service is your housing costs — mortgage payment, property tax, heating and condo fees — as a share of your gross household income. Lenders generally look for no more than 39%.
What is TDS?
Total debt service is the same housing costs plus all your other monthly debt payments, as a share of your gross household income. Lenders generally look for no more than 44%.
Why is the estimate lower than the payment I could afford?
Because lenders qualify you at the stress-test rate, not the rate you will actually pay. That higher rate pushes your payment up for qualification purposes, which lowers the price you qualify for.
What could raise how much I can afford?
Higher income, lower monthly debts, a larger down payment, or a lower rate can all help. A real pre-approval review looks at your actual documents to confirm the number.
Prefer to talk? Call Travis Bannert at 780-720-8240 or book a call.
Also try: Mortgage Stress Test Calculator, Renewal Comparison Calculator, Mortgage Renewal Countdown Calculator and What a Rate Change Does to Your Payment.