Gross Debt Service (GDS) and Total Debt Service (TDS) are ratios that banks and mortgage brokers will calculate to determine if you are financially able to afford the mortgage you are applying for. Gross Debt Service is the percentage of your gross income that is required to cover housing costs. Your GDS should not be…
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Category Archives: Mortgage
How To Improve Your Credit Score
In the first two articles this week, we discussed how to get your credit report and how to calculate your credit score. Now we’ll look at what you can do to improve your credit score. Pay your bills on time. Late payments are one of the biggest hits to your credit score. Keep your balances…
Calculate Your Credit Score For Free
In yesterday’s article on checking your credit reports, I mentioned that it might be worth paying for your credit report to get your credit score. However, if you’re not too worried about an exact number and would like to have a general idea of your credit score, there is a way to calculate this for…
Check Your Credit Reports
When you apply for a credit card, loan or mortgage, the bank will check your credit history before making a decision to lend you the money. This information comes from the two reporting agencies in Canada: Equifax Canada Inc. TransUnion of Canada These companies keep files on individuals who apply for credit. Lenders, insurers, creditors…
Fixed or Variable Rate Mortgage?
Variable rate mortgages have been widely available in Canada since the 1990s. A report released in 2001 states that historically, variable rate mortgages at prime have benefited borrowers 88.6% of the time over the fixed rate. Obviously borrowers who have rates of less than prime are even better off. This historical savings is the risk…
Accelerated Bi-Weekly Mortgage Payments
Do you have a monthly mortgage payment but get paid every 2 weeks? One of the simplest ways to reduce the total interest you pay is to split your mortgage payment in half and pay that amount every 2 weeks. You’re not likely to notice the extra amount you are paying off but it can…
Home Buyers Plan (HBP)
The Home Buyers Plan is a government program that allows you to withdraw up to $25,000 from your RRSP towards the purchase of your first home without any tax being withheld. You then have to repay this amount over 15 years. Since you have already received a tax refund for these funds when they were…
