What is the maximum Total Debt Service (TDS) ratio typically allowed for mortgage qualification in Canada?
Correct Answer
B) 44%
CMHC's current limit for Total Debt Service is 44% of gross household income. TDS counts principal, interest, property taxes and heating, 50% of any condominium fees, and payments on all other debts. The companion Gross Debt Service limit, which counts housing costs only, is 39%.
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