Arjun and Ananya have been operating a small business for several years. They’ve faced challenges in managing the rising costs and now looking to secure a line of credit for renovations. The bank has asked them to provide their financial details. They’ve provided the information below. What is their Gross Debt Service (GDS) ratio?
Arjun's annual gross salary: $90,000
Ananya's annual gross salary: $91,000
Monthly mortgage payment: $3,950
Annual property taxes: $4,400
Monthly heating costs: $210
Annual condo fees: $3,200
Arjun’s monthly personal loan: $170
Ananya’s monthly car loan: $425
Arjun's monthly car loan: $330