Debt Service Calculator

At Broder Homes, we care about giving you a home that fits your lifestyle.

Understanding your budget is the first step to getting a new home. We’ve put together this calculator to look at your whole debt picture, just like the banks will. This way, you’ll know right away what kind of budget you have for your new home.

Debt Service Calculator

When you’re looking for a loan or mortgage, your financial advisor will use two common ratios to determine if you can afford the new debt along with any current financial obligations you have.

Gross Debt Service (GDS)

This is the percentage of your monthly household income that you use to cover any housing costs. It includes your mortgage principle and interest, property taxes, heating expenses, and half of any condo fees, if applicable. This percentage should be less than 32%.

Total Debt Service (TDS)

This is the percentage of your monthly household income that you use to cover all your debt. It includes your mortgage principle and interest, property taxes, heating expenses, half of any condo fees, car loans, and line of credit and credit card payments. This percentage should be less than 42%.

Please enter your household's total gross annual income, and we'll calculate these ratios for you.

HOUSEHOLD INCOME

$

Your annual income before taxes and deductions.

Now, you can enter your monthly average expenses and we can calculate how much you can afford to borrow.

$
The amount you pay towards your mortgage each month.
$
The amount you pay towards all utilities (gas, electric, water, etc.)
$
The amount you pay to your municipality each month. If this amount is included in your mortgage payment, write: $0
$
The amount you pay towards condo fees, maintenance costs, or other monthly housing expenses each month.

Finally, enter your monthly debt payment obligations.

$
The amount you pay towards your credit card debt each month.
$
The amount you pay towards a vehicle loan or lease payment each month.
$
The amount you pay towards any personal loans or lines of credit each month.
$
The amount you pay towards any other financial obligations each month.

Based on the numbers you’ve entered, here are your results.

GDS    Gross Debt Service

The recommended GDS percentage is 32%.

TDS    Total Debt Service

The recommended GDS percentage is 42%.

While these percentages can give you a clearer picture of whether or not you’re able to take on more debt, it is important to speak to a financial advisor or mortgage broker. The Broder Homes team is always here to help if you need recommendations or have any questions about getting into your new home.

Give us a call at 403-302-7366 or visit a Show Home to chat with one our team members.