Canadians who are shopping for a mortgage are likely to already have some form of debt. In fact, between things like student loans, car loans, credit card bills and lines of credit, the average Canadian carries around $30,000 of non-mortgage debt, according to TransUnion. So you might be wondering: How does debt impact your mortgage application? Using debt responsibly helps build your credit history, making it easier for you to borrow from banks and other lenders. But could large amounts of debt prevent you from obtaining the mortgage you want?
Watch this video to understand how debt helps lenders determine your credit-worthiness, as well as how much you can afford on a mortgage, when reviewing your application.
Watch: MoneySense – Does debt impact your mortgage application