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.
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.
Finally, enter your monthly debt payment obligations.
Based on the numbers you’ve entered, here are your results.
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.