If a lender determines that an applicant's GDS ratio exceeds the acceptable threshold, which of the following actions might the lender propose to help the applicant qualify?

Question: If a lender determines that an applicant's GDS ratio exceeds the acceptable threshold, which of the following actions might the lender propose to help the applicant qualify?

Answer options: ✅ Suggest increasing the mortgage amortization period.

• Recommend that the applicant increase their declared heating costs.
• Allow the applicant to exclude property taxes from the calculation.
• Advise the applicant to secure a lower down payment.

Correct answer: Suggest increasing the mortgage amortization period.

Explanation: Increasing the mortgage amortization period would reduce the monthly principal and interest payments, thereby lowering the P.I.T.H. and consequently the GDS ratio. This is a common strategy lenders may suggest to help an applicant qualify when their debt service ratios are too high. Increasing declared heating costs or reducing down payment would worsen the ratio, and excluding property taxes is not permitted.