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%.
Why This Is the Correct Answer
44% is CMHC's current maximum TDS ratio: housing costs plus all other debt payments should not exceed 44% of gross household income. Lenders commonly use it as the upper limit for insured mortgages.
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