It helps to understand what goes into making the decision about your mortgage approval.
Here are the key things that lenders generally consider when looking at an application.
1. Capacity to Repay
a. Gross Debt Servicing Ratio (GDSR) <= 32%
b. Total Debt Servicing Ratio (TDSR) <= 40%
2. Credit History
3. Collateral (security): The property value you are purchasing
4. Net Worth: The difference between what you own (assets such as savings and real estate) and what you owe (liabilities such as credit card debt and loans)
These are the factors one will look at when they consider you are ready for the particular property or not.
For more detailed information, please visit www.VancouverTDmortgage.com
John Hahn
TD Canada Trust Mortgage Manager
