Interested in learning more about property mortgages in Canada? Look no further!
Latest News
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Canada's Big-Bank CEOs weighed this week in on the current state of their mortgage clients, including those they consider "vulnerable" in the event of a recession..... More »
80,000 variable-rate mortgages will reach their trigger point by year-end: RBC + MORE Aug 27th
Canada's largest bank said about 80,000 of its variable-rate mortgage clients will reach their trigger point with the next "couple of" Bank of Canada rate hikes..... More »
70% of Scotiabank’s mortgage originations in Q1 were multi-product deals + MORE Mar 1st
Scotiabank is reporting success in its efforts to grow its deposits and increase profitability by doing more cross-selling to new mortgage clients..... More »
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Credit Cards
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New year, better mortgage rates: Credit tips to get you there + MORE Jan 5th
As we step into a new year, it’s a great time to reassess your financial habits and ensure your credit profile is in top shape..... More »
Could a line of credit impact my mortgage application?
– moneysense.ca
Prospective house hunters and those looking to refinance an existing mortgage should consider the impacts of their lines of credit on their mortgage application. That’s because lenders take non-mortgage debt, including line of credit payments, into account when determining how much you can afford to borrow.
How a line of credit affects a mortgage application
Lenders consider factors like a borrower’s creditworthiness, income and existing debt before lending them money.
When it comes to mortgages, they want to know what percentage of your income will be spent on housing costs, to ensure you can afford your future mortgage payments. This is called the gross debt service ratio (GDS), and it is based on your mortgage principal and interest, taxes, heating costs and condo fees (if applicable) divided by your income.
But lenders also want to know that you will be able to pay your mortgage in addition to all your other existing debt. To figure this out, they use what’s called the total debt service ratio (TDS)…
