Flexible Debt Ratios
Flexible debt ratios refer to a lending approach in which lenders are willing to accept higher levels of debt relative to income than traditional lenders. This means they are more lenient in their calculations of how much of your income can go towards debt payments, including your mortgage.
Key Aspects of Flexible Debt Ratios:
Higher Debt Allowance: Borrowers with non-traditional or variable income can qualify with higher debt-to-income limits.
Ideal for Self-Employed Borrowers: Flexible debt ratios make it easier for freelancers or contractors to access mortgage financing.
Income Consideration: Lenders may weigh additional income sources, such as rental or investment income, in the approval process.
Flexible debt ratios provide more accessible mortgage options for individuals with complex financial profiles.
To discover lenders with flexible debt ratio options, read our Lender Reviews.
Learn More About Any of These Terms:
-
A
- Oct 2, 2024 Amortization
- Oct 8, 2024 Alternative Rates
-
B
- Oct 2, 2024 Beneficiary
- Oct 8, 2024 Bank Statement Program
-
C
- Oct 2, 2024 Contribution Limit
- Oct 2, 2024 Emergency Fund
- Oct 2, 2024 Conversion
-
D
- Oct 2, 2024 Death Benefit
-
F
- Oct 17, 2024 Flexible Debt Ratios
-
G
- Oct 2, 2024 Graduate Program
-
H
- Oct 2, 2024 Home Equity Line of Credit (HELOC)
-
L
- Oct 2, 2024 Lender Fee
-
M
- Oct 2, 2024 Mortgage Insurance
-
P
- Oct 2, 2024 Premium
- Oct 2, 2024 Permanent Life Insurance
- Oct 17, 2024 Penalties
-
R
- Oct 2, 2024 Risk Tolerance
- Oct 2, 2024 RRSP (Registered Retirement Savings Plan)
- Oct 2, 2024 RESP (Registered Education Savings Plan)
- Oct 17, 2024 Rental Program
-
S
- Oct 1, 2024 Stress Test
-
T
- Oct 2, 2024 Term Life Insurance
- Oct 2, 2024 TFSA (Tax-Free Savings Account)
