TDS Calculator

When you decide to buy a property, then there are various factors that require consideration which includes size, affordability and location.Among these factors, affordability is the element which the lender will deliberately look for when you apply for a loan or a mortgage to buy property. Similar to the lender, even the borrower wants to know as to how much he can borrow and for this, TDS Calculator is the best option.

However, the borrower usually consults a mortgage lender which gave him a quote. The borrower then decided to take a second opinion and he contacted another mortgage lender who gave him another quite which was different from the previous quote. Under such a situation, no one can be given the point of being faulty as every other mortgage lender hasa unique criterion on which they decide the position of the borrower to qualify for the loan.

The aspect of affording a loan translates within two aspects for the lender which includes TDS (Total Debt Service Ratio) and GDS (Gross Debt Service Ratio). Through these ratios, lenders tend to determine how much money they can lend to you. In this article, we will be speaking particularly about TDS and its relative calculation.

TDS
TDS is basically a percentage of income which is required to pay off monthly costs associated with housing and which includes property taxes, mortgage as well as 50% of the condo fees, if applicable. In addition to this, all monthly debts such as car debts, alimony, credit cards and any other loans are also taken into consideration. The set standard by the industry for TDS is that of 40%.

Calculating TDS has become very simple and now many people can calculate their TDS through online calculators offered by different websites. All you have to do is to add up all your monthly debts and payments which will bring up your total monthly expenses amount. Divide this amount with your gross income which will then be multiplied by 100% thereby, providing your TDS.

There are various benefits associated with TDS calculators. Amongst many, these calculators are easy and simple to use. The entire calculation is performed in a fast way. Moreover, these calculators are quite cost effective and they eliminate paperwork which is quite a hassle. In addition to this, since, all the calculations are done electronically and in a computerized manner, the risk of errors or miscalculation is eliminated.

Another great advantage of using these calculators for calculating TDS is that they offer better budgeting aspects. Since, you will get to know how much money you need to have every month so as to qualify for your loan or mortgage, you can easily determine how much more money you need so as to meet your regular monthly expenses. You can deduct the mortgage monthly payment from your monthly income and the rest is all yours. You can make plans accordingly.

TDS Calculator is considered to be an effective way of determining your position of obtaining a loan for your new property. There are many calculators available online which can be accessed very easily.