home > home mortgages > mortgage rates > articles > qualify for lowest rates

How to qualify for the lowest home mortgage rates

This mortgage article will tell you how to qualify for the lowest mortgage rates.

In order to qualify for the lowest home mortgage rates out there, you need to be able to qualify with one of The Mortgage Store Online's "Grade A" lenders.

What's a "Grade A" lender? It's an institutional lender (like a bank or trust company) that offers the lowest mortgage rates for your home mortgage loan. So it'd be good to know how to qualify for a home mortgage loan with a lender like that, wouldn't it? Read on.

Have Good debt servicing to get the lowest mortgage rates

The main thing you need to qualify with a "Grade A" lender to get the lowest mortgage rate - is to have "good debt servicing." What's debt servicing?

Debt servicing is made up of two parts: "Gross Debt Servicing" (or "GDS") and "Total Debt Servicing" (or "TDS").

What "Gross Debt Servicing" (GDS) is

GDS is the percentage of your income that you'll put towards actual payments on the new home mortgage loan that you're getting. So it's the percentage of your income that you'll be using each year to put toward your home mortgage loan payments, any property taxes you'll pay on your new home property and any condo-fee you'd have to pay.

What "Total Debt Servicing" (TDS) is

What's TDS? TDS is the percentage of your income that you put towards your living costs each year. So it's the percentage of your income each year that you put towards any home mortgages you already have, and any credit cards, bank loans and car loans you might have, as well as any property taxes you're currently paying for any home mortgage loans you have right now.

What percentage your GDS needs to be to get the lowest mortgage rates

As well, in order for you to qualify for the lowest mortgage rates with one of The Mortgage Store Online's "Grade A" lender's, you'd want your GDS to either be exactly equal to or less than 40%.

That means, if you made $100,000 a year, you can't have more than $40,000 each year going towards your new home mortgage loan payments, any property taxes you'll pay on your new home property and any condo-fee you might have to pay.

What percentage your TDS needs to be to get the lowest mortgage rates

In order for you to qualify with one of The Mortgage Store Online's "Grade A" lender's and get the lowest mortgage rate, you'd want your TDS to either be exactly equal to or less than 32%.

That means, if you made $100,000 a year, you can't have more than $32,000 each year going towards any home mortgage loans you already have, and any credit cards, bank loans and car loans you might have, as well as any property taxes you're currently paying for any home mortgages you have right now.

Conclusion on getting the lowest mortgage rate

In order to find out your GDS/TDS percentages - contact one of The Mortgage Store Online's brokers by calling them at 1-866-880-2577. By filling out a mortgage application for you, they can let you know if you debt service and qualify for the lowest mortgage rates with a "Grade A" mortgage-lender.

Get your mortgage today: just fill out the home mortgage application.

Get more info about home mortgage loan rates, by contacting The Mortgage Store Online's brokers. Just use the rate quote form or call them at 1-866-880-2577.

<< return to mortgage loan rate articles