Final answer:
GDSR calculations exclude student loan repayment, principle, and mortgage default premium. Heating bill is typically included. Option D is correct.
Step-by-step explanation:
When calculating GDSR (Gross Debt Service Ratio), certain expenses are not included. One of these expenses is student loan repayment. GDSR is a measure used by lenders to assess a borrower's ability to pay their housing expenses, and it focuses on the costs directly related to housing.
Other expenses not included in GDSR calculations are principle, which refers to the original amount borrowed, and mortgage default premium, which is an insurance premium paid for high ratio mortgages.
Heating bill, on the other hand, is typically included in GDSR calculations as it is a recurring expense directly related to housing.
The Gross Debt Service Ratio (GDSR) is utilized by lenders to determine a borrower's ability to afford their monthly housing costs. When calculating GDSR, lenders will typically include items such as principal, interest, property taxes, and heating expenses.
However, the item that is never included when calculating GDSR is d. heating bill. This is because the heating bill can vary and is not typically considered part of the core housing costs by lenders for the purposes of this calculation.