When mortgage professionals determine what your maximum mortgage is that you can afford, they will also look at your Total Debt Service Ratio. This is your entire monthly debt load (including housing costs and other debts, such as car loans and credit card payments). This should not exceed more than 40% of your gross monthly income.
TIP: Taking a smaller mortgage can help to ensure that your monthly housing costs remain within your budget.
Original article from: www.cmhc-schl.gc.ca