The percentage of gross income allocated for payments of principal, interest, taxes, and heat (P.I.T.H.), along with other debt obligations, is a crucial metric. It helps determine the affordability of a mortgage and ensures that borrowers can manage their monthly financial commitments. Lenders typically use this percentage to assess the borrower’s ability to repay the loan without financial strain. This calculation is essential for both lenders and borrowers in the mortgage approval process.

*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 [...]

  • Home Buying Guide

    Buying a home in Canada can be both exciting and daunting. With a competitive market and unique regulations, it's essential [...]

  • Mortgage Relief Options

    Facing financial difficulties can be overwhelming, especially when it comes to managing your mortgage payments. Fortunately, there are several [...]

  • Optional Mortgage Insurance Products

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