What debt ratios does a mortgage lender look at in Canada?

The Financial Consumer Agency of Canada says your total monthly housing costs should not be more than 39 percent of your gross household income. That is the gross debt service ratio. Housing costs in that ratio are the mortgage payment, property taxes, heating, and 50 percent of condo fees if there are any. Your total debt load should not be more than 44 percent of your gross income. That is the total debt service ratio. It adds the housing costs to your other monthly debts, such as credit cards, a car loan, a line of credit, student loans, and support payments. The page says you may still be considered if a ratio is a little higher, and that this raises the risk of more debt than you can afford. This page does not say a lender will approve the mortgage.

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