In Order to Qualify for a Mortgage You Must Conform

question 36

True/False

In order to qualify for a mortgage you must conform with both the gross debt service ratio and total debt service ratio.

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Definitions:

RRSP

A savings and investment account designed for the retirement of both employees and self-employed individuals in Canada, known as Registered Retirement Savings Plan.

Annuity

A financial product, particularly used for retirement savings, that pays out a fixed stream of payments to an individual, typically after investment.

Contribution

An amount of money or assistance given to support a cause or for a common purpose.

Compounded Annually

The method of computing interest that includes the original principal amount and the interest accrued over prior periods each year.