Calculators & Tools
Determine What You Can Afford
Try our TD Mortgage Affordability Calculator.
Find the right balance.
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
40% of your gross
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.
Once you know what you can afford, get a pre-approval.
Make an appointment with a TD Mortgage Specialist to discuss a mortgage 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