Debt Ratios Decoded: Help Your Clients Qualify for Higher Purchase Prices

<p>Debt ratios are the hidden gatekeeper on nearly every mortgage application — and most realtors don't know how to work around them. In this episode, Scott Dillingham shows you how GDS and TDS ratios work, when to bring in B lenders or private lenders, and how to get clients approved at higher purchase prices.</p><ul><li>Debt Ratio Variations: The same 44% debt-to-income ratio means different things at different lenders due to varying calculation methods for credit cards, student loans, and income sources</li><li>Credit Card Calculations: Some banks use 3% of your total credit limit as a payment, even if balances are zero, significantly impacting qualification</li><li>Income Treatment Differs: Child tax benefits, maternity leave, rental income, and self-employed income are evaluated differently by each lender</li><li>B Lender Advantages: Alternative lenders accept 50-60% debt ratios, use actual payments instead of calculated minimums, and allow guarantor income</li><li>Private Lender Options: When traditional financing fails, private lenders focus on the overall story and exit strategy rather than strict ratios</li><li>Never Accept First No: If a bank declines based on debt ratios, consult a mortgage broker who can explore all available lending options</li></ul><p><br><strong>Links to Show References<br></strong><br>LendCity Mortgages: https://lendcity.ca</p>

<ul><li>(00:00) - Introduction to Close More Deals Podcast

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<li>(00:04) - Why Understanding Debt Ratios Helps Close More Deals

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<li>(00:44) - The 44% Debt-to-Income Ratio Explained

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<li>(01:00) - How Banks Calculate Total Debt Payments

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<li>(01:43) - Hidden Credit Card Calculation Methods

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<li>(02:04) - Student Debt and First-Time Homebuyer Considerations