The amount of mortgage you may qualify for depends on two things: income and the amount of debt you are carrying. Financial institutions use two different ratios to measure your borrowing ability. The first is your Gross Debt Service Ratio (GDSR). The second is your Total Debt Service Ratio (TDSR). Gross Debt Service Ratio Gross […]
Measure Your Borrowing Ability: Debt Service Ratios Read More »
Traditionally, the minimum amount of down payment required to purchase a home has been 5% of the purchase price. Recent innovations in Mortgage Loan Insurance have allowed lenders to give home buyers the opportunity to cover the requisite down payment by borrowing the funds from an alternate credit source such as personal line of credit
Understanding Equity Read More »
A down payment is the amount you can immediately contribute towards the cost of your home purchase. Since most people do not have enough savings to purchase a home outright, the gap between your down payment and the purchase price of your home is made up with a mortgage loan. Down Payment + Mortgage Loan
The Lowdown on Down Payments Read More »
What is classified as income for qualifying purposes? Some forms of income that represent revenue to your household may not count as income for qualification purposes. Here are some of the many sources of income and some of the guidelines for using them to qualify for a mortgage. The important thing when it comes to
What’s Classified as Income for Mortgage Qualifying Purposes? Read More »
