{"id":122,"date":"2017-08-05T20:46:07","date_gmt":"2017-08-05T20:46:07","guid":{"rendered":"https:\/\/passit.ca\/real-estate-pulse\/?p=122"},"modified":"2024-05-15T14:52:28","modified_gmt":"2024-05-15T18:52:28","slug":"calculating-monthly-pi-payment-based-on-tds","status":"publish","type":"post","link":"https:\/\/passit.ca\/real-estate-pulse\/calculating-monthly-pi-payment-based-on-tds\/","title":{"rendered":"Calculating Monthly PI Payment Based on TDS"},"content":{"rendered":"\n<p>Here&#8217;s an example that may help clarify how to calculate PI payments when a TDS is involved.Anycity Lending Inc. is assessing Buyer Gordon\u2019s financial abilities to buy a resale home for $397,500. The borrower has an annual income of $90,000 with monthly credit card payments of $450. The property\u2019s estimated annual property taxes are $5,600. If the borrower requires a $357,000 mortgage at 4.75%, what is the\u00a0<em>maximum<\/em>\u00a0monthly PI payment that the buyer can qualify for based on the lender\u2019s 40% TDS ratio?<\/p>\n\n\n\n<p><strong>Solution:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>First, calculate the maximum total debt payment permitted based on a 40% TDS ratio: $90,000 x .40 = $36,000.<\/li><li>Next, annualize the credit card payments: ($450 x 12) = $5,400.<\/li><li>Subtract both the annual credit card payments and the annual taxes from $36,000: $36,000 &#8211; ($5,400 + 5,600) = $25,000. This represents the maximum annual PI payments, which must be then divided by 12 to arrive at the monthly PI payments: $25,000 \u00f7 12 = $2,083.33.<\/li><\/ul>\n\n\n\n<p><em>Tip:<\/em>&nbsp;The sale price and mortgage information are extraneous and not required to arrive at the correct answer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p class=\"excerpt\">Here&#8217;s an example that may help clarify how to calculate PI payments when a TDS is involved.Anycity Lending Inc. is assessing Buyer Gordon\u2019s financial abilities to buy a resale home for $397,500. The borrower has an annual income of $90,000 with monthly credit card payments of $450. The property\u2019s estimated annual property taxes are $5,600. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":341,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24,19,4],"tags":[],"class_list":["post-122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-course-2-residential-real-estate-transactions","category-humber-college","category-real-estate-course-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Calculating Monthly PI Payment Based on TDS - Passit\u00ae Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/passit.ca\/real-estate-pulse\/calculating-monthly-pi-payment-based-on-tds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Calculating Monthly PI Payment Based on TDS - Passit\u00ae Blog\" \/>\n<meta property=\"og:description\" content=\"Here&#8217;s an example that may help clarify how to calculate PI payments when a TDS is involved.Anycity Lending Inc. is assessing Buyer Gordon\u2019s financial abilities to buy a resale home for $397,500. 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