In some conditions (especially when missing some key values), the ratios associated with an application may be blank or have odd values.  


This article covers a number of the most common questions raised about ratios, and provides some quick explanations and fixes. 


LTV is Blank


Both the Total Debt Service ratio (TDS) and the Gross Debt Service ratio depend primarily on monthly obligations to one or more mortgages, and the borrower's income. Ensure these values are present and valid to get reasonable TDS / GDS ratios.


1. Ensure the borrower(s) has current income.    

    

Select the borrower's tab and jump down to Employment section 


Enter the income amount. Ensure that the "Current" checkbox is checked. (Note: if Current is not checked, these employment records are treated as previous employment history, and are not used in the ratio calculations. 

Note that additional employment records can be added, and if marked as Current, will be used as additional components for GDS/TDS. Also, Current employment income for the secondary borrower(s) is also used in these calculations. 


2. Ensure new mortgage(s) is specified


Add whatever new mortgage(s) is being requested. 

At a minimum, ensure that for each mortgage, you've specified the requested amount, the interest rate, and the amortization period.


TDS / GDS is NaN% - No Monthly Payment


If TDS/GDS is shown as NaN% and there is no Monthly Payment calculated, it is likely that no interest rate has been defined, and thus no monthly payment can be calculated.




1. Ensure that each mortgage has an appropriate interest rate


Edit the mortgage or mortgages listed in the New Mortgages tab. Enter the interest rate (additional discounts and premiums may also be applied). Update the Mortgage.



TDS / GDS is NaN% - Monthly Payment is shown


If TDS/GDS is shown as NaN%, but there is a Monthly Payment calculated, it is likely that no current income has been declared, and thus there is no way to cover the servicing payments.


1. Ensure the borrower(s) has current income.    

    

Select the borrower's tab and jump down to Employment section 


Enter the income amount. Ensure that the "Current" checkbox is checked. (Note: if Current is not checked, these employment records are treated as previous employment history, and are not used in the ratio calculations. 

Note that additional employment records can be added, and if marked as Current, will be used as additional components for GDS/TDS. Also, Current employment income for the secondary borrower(s) is also used in these calculations. 



LTV is Infinity%


Loan-to-Value showing Infinity% typically indicates division by 0. That is, Loan-to-value is being calculated as some loan amount divided by 0 value.



This is caused by the selected property value (Purchase Price / Appraised Value / Estimated Value) not having a corresponding amount.  

1. Ensure that each selected property value has a corresponding non-zero value. 


Using the example shown, let's assume you have selected "Purchase Price" as the preferred basis for calculations, but that field is set to zero. You should either change your selection to "Appraised Value", or enter a non-zero value in the "Purchase Price" field.