The Best Mortgage Calculators For House Ownership Planning In Canada

Mortgage calculators use specific qualification ratios to determine how much mortgage you can afford. The calculators use the information you provide to calculate these ratios. The ratios are the Gross Debt Service ratio (GDS) and the Total Debt Service (TDS) ratio.

• GDS measures the percentage of your gross household income that will cover the housing costs: mortgage payment (principal and interest), property tax, heating cost and 50% condo fee (if applicable). 
• TDS measures the percentage of your gross household needed to cover all your debt payments (housing costs and personal debts). 

Below are a few things you can do to improve your mortgage affordability:

• Pay-Off Debts: If you choose to pay off some of your debts, those amounts will be excluded from your TDS calculation, which will help reduce your TDS ratio.
• Reduce Your Loan Amount: This option will help if your GDS ratio is also out of line. Everything being equal, reducing the requested loan amount will help reduce the required monthly mortgage payment. If you buy a new home, you will have to increase your down payment to reduce your loan amount. 
• Go For Lower Priced Homes: Another option is to purchase a lower-priced house.
• Consider Alternative Mortgage: Alternative mortgages accept a TDS ratio of up to 50% and a GDS ratio of up to 45%. An alternative mortgage is a better option if you get declined for a mortgage by your bank because either your TDS or GDS ratio is outside their acceptable guideline range. 
• Increase your Income: Increasing your income will help reduce your GDS and TDS ratios. That may mean adding a co-application of a cosigner with low debt obligations to the mortgage request to help boost your income.