April 21, 20263 min read
The simple version is easy; the mortgage-specific details are where the answer becomes valuable. Mortgage qualification is built from verified income, housing costs, recurring debts, the qualifying interest rate and the lender's policy limits.
How the mortgage math works
Here is what matters most:
- Gross debt service measures eligible housing costs against gross income.
- Total debt service adds other monthly debt obligations to the housing costs.
- The stress test can require qualification at a rate above the actual contract rate.
- Down payment, amortization, credit and property type can also change the maximum mortgage available.
An accurate qualification should use your real taxes, condo fees and debts rather than generic assumptions.
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