Luxury, once enjoyed becomes a neccesity!

This ratio excludes the debt repayment for your properties. It shows you the amount of your income towards non-mortgage debt repayments. A ratio of 15% or lower is considered to be safe while a ratio of more than 20%  indicate an undesirable situation.

 Too high a ratio means that you have been spending beyond your means. This type of debts are more related to lifestyle expenses so it is wise not to keep running up your credit card bills! You may need counseling if you have gone out of control.

Non mortgage Debt Service Ratio = Total monthly NM debt repayments divided by Monthly “Take Home” Income