The percentage of gross income allocated for payments of principal, interest, taxes, and heat (P.I.T.H.) includes 50% of condominium maintenance fees or 100% of the annual site lease for leasehold tenure. This calculation helps determine the affordability of housing costs relative to income, ensuring that homeowners can manage their financial obligations without overextending themselves. It is a crucial factor in mortgage approval and financial planning.

*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*

Mortgage Education

  • Total Debt Service Ratio (TDS)

    The percentage of gross income allocated for payments of principal, interest, taxes, and heat (P.I.T.H.), along with other debt obligations, [...]

  • Title Insurance

    Title insurance protects property owners and lenders from financial loss due to defects in the title of real property. These [...]

  • Discharging a Mortgage

    Understanding Mortgage Payment Deferrals in Canada In times of financial hardship, homeowners may find it challenging to keep up with [...]

  • How To Get a Mortgage

    Getting a mortgage is a significant step toward homeownership. However, the process can seem complex and overwhelming. This guide will [...]

  • Optional Mortgage Insurance Products

    Understanding Optional Mortgage Insurance Products in Canada When it comes to securing a mortgage in Canada, one of the [...]