Your pre-tax household income plays a key role in determining how much mortgage you can qualify for and what opportunities may be available to save money or build wealth through homeownership. Here’s why Ownwell needs in order to unlock your mortgage insights:
How Income Affects Mortgage Qualification
Lenders use your income to assess your ability to afford a mortgage. This is done by calculating key ratios:
Gross Debt Service (GDS) Ratio – This measures how much of your income goes toward housing costs, including mortgage payments, property taxes, and heating.
Total Debt Service (TDS) Ratio – This includes all your monthly debt payments (e.g., car loans, credit cards) along with housing costs to ensure you can manage all your financial obligations.
Your income, along with your existing mortgage details, helps us estimate these ratios, allowing us to identify opportunities such as:
Identify Savings Opportunities – Your income helps us determine if you could lower your monthly payments or reduce interest costs by switching to a better mortgage.
Upgrade Potential – Thinking about moving to a bigger or better home? We use your income to estimate your purchasing power and potential mortgage options.
Refinancing & Equity Access – If you’re considering refinancing, your income plays a key role in assessing how much home equity you can access.
If you don't know your exact pre-tax, household income, a rough estimate is fine.