How much home you can afford: the numbers lenders actually use
Doorvia Guides · May 2, 2026
Lenders test your gross debt service and total debt service ratios against your income and existing debts.
Affordability is decided by two ratios. Gross debt service compares your housing costs - mortgage payment, property tax, heat, and half of any condo fee - to your gross income. Total debt service adds all other debt payments, including car loans, credit lines and credit card minimums.
Lenders apply maximum thresholds for each, calculated at the stress-test qualifying rate rather than your actual rate.
That means paying down a car loan can raise your approval more than saving a few thousand more for a down payment. Before you shop, get a broker to run both ratios with your real debts, then set your own comfortable payment - lenders test the maximum, not what you should spend.
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