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Hi Red, Your broker's 5 1/2 times is probably a rule of thumb that he uses, the formulas that lenders use are a bit more complicated and take into account dependents, child support, living costs (such as hendersen poverty index) and many other things. Lenders are always supposed to look at...

PT_Bear is right. To make matters harder to follow, some have different minimum living expenses and dependency costs as well. There's another option to improve servicability if you're using a fixed rate - some lenders can assess your servicability on the exact fixed rate if it's a long term...