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Smart Borrowing



You can figure out how much to borrow with the help of an in-branch mortgage representative or a BMO Mortgage Specialist by doing a few calculations.


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  • What's Your Income After Expenses?

    The mortgage size is based on your total income minus expenses.

    Things to Bring Your First Meeting:

    It's recommended to always check with your mortgage provider for complete requirements.
    1. Your current household income (see worksheet below)
    2. Your current household debts (see worksheet below)
    3. Proof of income
    4. Two or three years of financial statements and tax returns, if you are self-employed

  • Calculate Your Income and Debt
    Find out how much you're eligible to borrow by downloading and completing the Income and Debt worksheet below.
    Once you've completed the Income and Debt Worksheet, you're ready to:

    Find a mortgage that feels right

    The size of a mortgage is based on two numbers: Gross Debt Service Ratio (GDS) and Total Debt Service Ratio (TDS). GDS reveals home costs equaling 32% or less of monthly income while TDS also includes all other debts—like credit cards and other loans—equaling 42% or less of monthly income. GDS and TDS are used as guidelines.

  • Calculations Made Simple

    Let's say you make $60,000 a year. Here's how to calculate your maximum GDS and TDS:

    Gross Debt Service Ratio (GDS)

    1. $60,000/12 months = $5,000
    2. $5,000 x 32% = $1,600
    In this case, your maximum GDS would be $1,600.

    Total Debt Service Ratio (TDS)

    1. $60,000/12 months = $5,000
    2. $5,000 x 42% = $2,100
    In this case, your maximum TDS would be $2,100.
    Your GDS and TDS ratio calculations must both be within your mortgage provider's guidelines and insurer's guidelines (if applicable).

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