According to rule, household should spend no more than 36% of its total debt service, which includes housing and other debts like credit cards and car loans, and no more than 28% of its gross monthly income on housing expenses.
Simple is the rule. Check to see if you are eligible for a mortgage by: greatest family costs will not surpass 28% of your gross month to month pay; Your debt-to-income ratio, or total debt in your household, is no more than 36% of your gross monthly income.
Your average gross (pre-tax) monthly income should not exceed 32% of your monthly housing expenses, according to the recommendation. Your gross debt-to-income (GDS) ratio is the name given to this percentage. To be eligible for an insured mortgage, a GDS ratio of 39% is required by CMHC.
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