Deal Scenario
Mortgage Deal Scenario
Canadian mortgage term definition with formula, examples, and limits used by mortgage brokers.
Definition
A complete description of a mortgage deal including borrower details (income, credit, employment), property details (value, type, location), and mortgage request (amount, type, amortization). Used for lender matching in platforms like BIPS.
Example
Scenario: $120K income, 700 credit, employed, $500K purchase, 10% down, 25yr amortization, owner-occupied condo in Toronto.
Related Terms
GDSMonthly housing costs divided by gross monthly income. Includes mortgage payment, property tax, heating, and 50% of condo fees.TDSAll monthly debt payments divided by gross monthly income. Includes housing costs plus credit cards, car loans, lines of credit, and other debts.LTVTotal mortgage debt divided by property value. Determines if CMHC insurance is required and which lenders qualify.CMHC InsuranceMandatory mortgage default insurance required when down payment is less than 20% (LTV > 80%). Enables up to 95% LTV financing.Stress TestBorrowers must qualify at a higher interest rate to ensure affordability if rates rise. Calculated as the maximum of contract rate + 2% or 5.25%.
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BIPS calculates GDS, TDS, LTV, stress test, and CMHC premiums automatically for every lender match.
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