The total debt service ratio (TDSR) is the percentage of gross annual income required to cover all other debts and loans in addition to the cost of servicing the property and the mortgage (principal, interest, taxes, heat etc.).
These percentages are called your debt ratios.Īre you ready to buy a home? Figure out how much you can afford using the CIBC Mortgage Affordability Calculator. does not exceed a certain percentage of your income. Along with evaluating the risk criteria, debt ratios measures your ability to repay the mortgage by ensuring your total debt - including car payments, student loans, credit card bills, etc.
One of the many criteria used to decide lending eligibility is your debt ratios.
