GDS TDS

[RandyStoik]

Hi, I am a new member to REIN and I am looking for the formulas to calculate my TDS and GDS? If anyone can help that would be great.

Thanks

 

[DOZAH]

QUOTE (rsstoik @ Nov 12 2008, 12:57 PM) Hi, I am a new member to REIN and I am looking for the formulas to calculate my TDS and GDS? If anyone can help that would be great.ThanksGDS = Gross Debt Service (32% industry standard)TDS = Total Debt Service (40% industry standard)

The GDS and TDS are debt service ratios that are designed to determine whether a mortgage payment can be afforded by the potential borrower. This is a ratio of debt to income expressed as a percentage.

GDS is calculated using the following equation:

GDS= [(PITH + 1/2 of condo maintenance fee) / Gross Income] x100

-The PITH represents Principle, Interest, property Tax, and property Heat
- Condo maintenance fee is only if applicable
-The Gross income is the potential borrowers total income before paying income taxes.
-The entire amount must be multiplied by one hundred to provide a percentage.

TDS is calculated using the following equation:

TDS = (PITH +1/2 of condo maintenance fee + other debts) / Gross Income

 

[JasGrewal]

QUOTE (rsstoik @ Nov 12 2008, 02:57 PM) Hi, I am a new member to REIN and I am looking for the formulas to calculate my TDS and GDS? If anyone can help that would be great.

Thanks


Hi:

The standard GDS and TDS is 32% and 40% respectively, however, please note that there are variations on the calculations depending on the type of deal (high ratio vs conventional) and the lender being used.

We have seen a lot of flexibility with our lenders on ratios that have exceeded 36% GDS and TDS over 44% as long as the overall covenant is good. This privilege is typically extended based on a client`s credit score and history.

Please call me at 416 410-9905 if you have any further questions.

Cheers,
Jas