Calculated Industries 3420 User Guide - Manual (Page 12)

U SER ’ S G UIDE — 11
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1) Stores Canadian GDS:TDS ratios for mortgage
qualifying. Entered ratios are separated by the
Colon
: key. For example, income and debt ratios
of 32% and 40%, respectively, are entered and per-
manently stored as follows:
3 2 : 4 0 q .
Default income and debt ratios for this key are 32%
and 40%, respectively. You may change these
ratios, if desired.
2) Calculates the maximum mortgage amount for
which a buyer may qualify, based on the stored
income and debt qualifying ratios and the entered:
• Term
• Interest
• Annual Income
• Monthly Debt
• Down Payment
• Monthly Property Taxes
• Monthly heating expense and other monthly hous-
ing expenses, if applicable (e.g., condo fees)
The output of this key is as follows:
Press Calculation
1
Displays stored Qualifying Ratios
(e.g., 32%:40%)
2 Maximum Qualifying Mortgage Amount
(restricted)*
3 Buyer’s Actual Ratios (Income%:Debt%)
4 Unrestricted Qualifying Mortgage Amount*
5 Maximum Allowable Debt
*Note: The Maximum Qualifying Mortgage Amount is the “restrict-
ed” mortgage the buyer may qualify for. This mortgage amount is
based on whichever of the two ratios – income or debt – limits
the buyer the most. The Unrestricted Qualifying Mortgage
Amount is the higher mortgage amount. It is based on whichever
of the two ratios – income or debt – limits the buyer the least. In
other words, whichever ratio will give the buyer the highest quali-
fying mortgage amount. For this unrestricted mortgage amount,
the calculator will display the letters “UNR” (for unrestricted) in
the display and the word “INC” or “DEBT” to indicate what ratio
side this mortgage amount was based on (i.e., income or debt).
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