Easy Calculations
The two calculations used with high ratio mortgages to determine maximum monthly payments are:

1. GDS (Gross Debt Service Ratio) = Principal+interest+property taxes+ heating+ 50% of condominium fees(if applicable) This total cannot exceed 32% of income.

2. TDS (Total Debt Service Ratio) = Principal+interest+property taxes+ heating+ 50% of condominium fees(if applicable) Payments of total debt cannot exceed 40% of income.

The maximum amortization period and the standard is 25 years. This is the life of the mortgage if no prepayments or extra payments are made.

Easy calculations using the GDS

Step I

Gross X 32% = A ( Maximum Affordable Monthly Household Costs)

Step 2

A=monthly property taxe============Pls redo this!