MYTH: You have to pay off all your debt before buying a home.
FACT: Although you should strive to be debt free, you don’t need to be debt-free to qualify for a mortgage, you need manageable debt. Lenders don’t expect zero debt. Instead, they look at your debt service ratios (GDS & TDS) to see how much of your income goes toward housing and other monthly payments. You can still qualify with a car loan, student loans, credit cards, or a line of credit as long as your payments fit comfortably within your income. It’s not about having no debt. It’s about having healthy ratios.
Worried your debt will stop you from buying a home?
✅ Car loans
✅ Student loans
✅ Credit cards
Don’t be. 😎 It’s not about having zero debt, it’s about structure, manageability, and smart debt to income ratios.
damilola.azeez@cleartrust.ca | www.damilolaazeez.ca | +1-416-668-4943
