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Set a Budget

Determine
what you can
afford

As a first-time home buyer, you may be asking yourself "how much can I afford?". To get you started, below are two simple calculations that most lenders use as a guide for housing costs and overall debt levels. Keep in mind that these numbers are prescribed maximums and that you should strive for lower ratios for a more affordable lifestyle.


Gross Debt Service (GDS) ratio

The GDS looks at your proposed new housing costs (mortgage payments, taxes, heating costs, and 50% of condominium fees, if applicable) in relation to your income. Generally speaking, this amount should be no more than 32% of your gross monthly income.

32%
of your gross monthly income

40%
of your gross monthly income

Total Debt Service (TDS) ratio

The TDS ratio measures your total debt obligations (including housing costs, loans, lines of credit, car payments, and credit card bills) in relation to your income. Generally speaking, your TDS ratio should be no more than 40% of your gross monthly income.


 

Get a pre-approval

Make an appointment with a TD Mortgage Specialist to discuss a mortgage pre-approval. TD Mobile Mortgage Specialists will work around your schedule and will gladly visit you at home for added convenience.

A pre-approval1 will help you determine the maximum amount of money that you may be able to borrow for your first home. We are committing to a specific term and interest rate for the pre-approval.

There are several advantages to taking this step early.

  • You'll know how much you can afford
  • You'll know what your interest rate will be (guaranteed to 90 days)
  • You'll be in a good position to make an offer when you find the right home
  • There's no obligation or cost to you

Ready to get pre-approved for a mortgage? Our Mortgage Specialists are ready to help.

Book an appointment online today, or call us at 1-866-222-3456