I am a little confused by your statement that my response doesn't reflect reality. The calculation of TDS and GDS is standardized across the country. I was responding to a poster who stated that credit limits are used to calculate these ratios - this is indeed incorrect as they are not used when calculating TDS and GDS.Blubbs wrote: ↑Mar 20th, 2017 2:35 pmYour response doesn't reflect reality, which is that many lenders don't look only at the prescribed ratios. They have the right to look at whatever financial factors they want, it's their money being lent after all. Sometimes all sorts of extra documentation is requested, especially if someone is self employed. I know for a fact that some lenders look at max CC capacity.
Yes, those numbers don't form the ratios. They are looked at separately.
Of course mortgage lenders are free to use whatever factors and criteria that they wish (within the confines of the law) to underwrite a mortgage and qualify someone. But that wasn't what I was responding to. The reality is that when calculating TDS and GDS, credit availability is not used.