Affordability is obviously one of the biggest factors that the bank will consider when deciding whether or not to give a mortgage. Which two mortgage formulas, as well as percentage cap determines if a bank is willing to lend?

1. Gross Debt Service ratio should be more than 32%; Total Debt Service ratio should not be more than 40%
2. Gross Debt Service ratio should not be more than 40%; Total Debt Service ratio should be more than 32%
3. Gross Debt Service ratio should not be more than 40%; Total Debt Service ratio should not be more than 32%
4. Gross Debt Service ratio should not be more than 32%; Total Debt Service ratio should not be more than 40%
5. Neither of these formulas are used by the lender if a 20% down payment is provided.