How Much Can I Afford?

To calculate the size of the mortgage available to you, we use the lower of the total debt service ratio or gross debt service ratio from the information you’ve provided.

The GDS (gross debt service) ratio is used to determine the maximum loan amount for which you qualify. Your debt cannot be more than 30 per cent of your gross (before tax) income. This figure will include minimum principal and interest of the mortgage payment, property taxes, heat and, if applicable secondary financing and 50 per cent of condo fees.

The TDS (total debt service) ratio takes into account other debts such as car payments, personal loans or credit card balances. Your debt, with monthly expenses, cannot be more than 40 per cent of your before-tax income.

*This calculation is an approximation; this is not an approved amount. Actual mortgage applications are subject to approval and London Life lending criteria.