Looking to Buy your First Home?
Planning ahead is the key! Here are some important details to consider!
Step 1: Assess your Financial Readiness
Lenders use two calculations to help determine your eligibility for mortgage: your Gross Debt Service ratio (GDS) and your Total Debt Service ratio (TDS).
Your GDS ratio includes the % of your gross monthly income is used for mortgage payments, taxes and heating costs (condo buyers and half of your condo fees). Your GDS should not be more than 32% of your gross monthly income.
Your TDS is the % of gross monthly income required to cover your GDS AND all other debt payments such as car loans etc.
Your TDS should not be more than 40% of your gross monthly income.
Get Pre-approved! This will provide you with a realistic expectation of what you can afford. It is not a guarantee, but does give you the knowledge your need to move forward with your search.
Ask Doris for a mortgage lender referral, she works with several and can recommend one that would be best suited for your needs.
Click here to read the entire report and receive all the key steps to buying your first home