When a Canadian lender reviews your mortgage application, two ratios matter more than almost anything else: GDS and TDS. These two percentages determine how much you can borrow, whether you pass the stress test, and in many cases whether you are approved at all. This guide explains what they are, how they are calculated, and … Read more
If you have applied for a mortgage in Canada since 2018, you have encountered the stress test. Many buyers are surprised by it, because they are approved for less than they expected, even when they can easily afford the monthly payment at the advertised rate. This guide explains exactly how the test works, why it … Read more
Canada calculates mortgage payments differently from the United States, and the difference is not a small technicality. It changes the actual amount you pay every month. If you use an American mortgage calculator for a Canadian mortgage, your numbers will be wrong. The key difference: semi-annual compounding In Canada, fixed-rate mortgages use semi-annual compounding by … Read more