First Affordability Rule Lenders typically allow you to spend about 32% of your gross monthly income on housing costs, including property taxes, heating, and 50% of condominium fees (if applicable). This is known as the Gross Debt Service (GDS) ratio. Understanding this helps answer the common question, “How much mortgage can I afford?” Second Affordability Rule Your total monthly debt load shouldn’t exceed 40% of your gross monthly income. This includes housing costs and other debts like car loans and credit card payments, referred to as the Total Debt Service (TDS) ratio. Understanding Affordability !
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