If you have a lot of debt such as a car loan,student loan,line of credit and credit card balances which you carry from month to month,which will be most relevant in determining how much mortgage you can afford?

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The Total Debt Service (TDS) ratio takes into account all of your existing debt payments, including car loans, student loans, lines of credit, and credit card balances, and compares them to your gross income. This gives lenders an idea of your ability to handle additional debt payments such as a mortgage. The Gross Debt Service (GDS) ratio only takes into account the cost of housing (mortgage payment, property taxes, heating expenses, and 50% of condo fees), which is important but not the only factor in determining whether you can afford a mortgage. The Home Buyers' Plan (HBP) is a program that allows eligible buyers to withdraw up to $35,000 from their RRSPs to use as a down payment on a home, but it does not affect your ability to afford a mortgage.

If You Have a Lot of Debt Such as a Car