Loan-to-value ratio (LTV) is the amount of the mortgage loan (liability) compared to the value of the property. This ratio is calculated by the lender prior to providing the loan. The results of this calculation help to determine whether or not the applicant will qualify for a loan and whether the application, if approved, will [...]

An excellent way to force an increased payment while protecting yourself from raising interest rates is the frozen mortgage payment available for variable rate mortgages. This option is hard to find but a good broker will know where to look. Let’s take a look at today’s (Jan 15, 2010) frozen payment: 2.05% Current VRM rate [...]

Debt servicing ratios are the ratios used to calculate debt owed by someone looking to obtain a mortgage. Gross Debt Service Ratio (GDS): The percentage of the borrower’s income that is needed to make all payments for costs associated with housing. There is a maximum amount associated with this ratio to ensure that borrowers can [...]