Glossary of terms

Gross Debt: The percentage of gross income which is the maximum a
mortgagor is allowed to pay annually in principal, interest, and property taxes.
For example a motgagor may pay $270 out of $1000.00 gross income as P.I.T.
payments. This ratio is usually expressed as a percentage ie P.I.T. payment can
be 27% of gross income. Compare to Loan to Value Ratio.

Gross Debt Service Ratio (GDS): The GDS is the maximum percentage of your
gross income that is allocated to paying the costs of carrying your home. This
ratio includes your principal and interest mortgage payment, property taxes,
heating and/or condo fees. To qualify your monthly carrying costs cannot
exceed 32% of your gross monthly income.

Gross Income: The amount earned through employment or investment before
taking taxes or other deductions into consideration. This amount may or may
not be the same as gross income for purpose of mortgage lending.
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