Total mortgage financing of $968 per month,and monthly debt payments of $530,given total monthly household income of $3457 results in a gross debt service ratio of 28 percent.

Question

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The gross debt service ratio is calculated as (total monthly housing costs / gross monthly income) * 100. In this case, it would be ($968 / $3457) * 100 = 28%. However, the calculation provided only considers the mortgage financing and does not include the monthly debt payments in the gross debt service ratio calculation. The inclusion of other monthly debt payments is actually part of the total debt service ratio calculation, not the gross debt service ratio.

Total Mortgage Financing of $968 Per Month,and Monthly Debt Payments