Which of the following indicates what is NOT included when calculating TDS?

When calculating the Total Debt Service (TDS) ratio, lenders assess a borrower's ability to manage monthly debt payments in relation to their gross income. This ratio includes various ongoing financial obligations to determine an individual's affordability for additional borrowing.

The correct choice indicates that debts which will not have an outstanding amount if payments stop are not considered in the TDS calculation. This is important because TDS is focused on the debts that have a continuous impact on an individual's finances. Therefore, temporary obligations or those that can easily cease without consequence are not part of the calculation.

In contrast, condo fees, regular mortgage payments, and property taxes are all ongoing financial responsibilities that affect a homeowner's long-term financial stability and must be included in the TDS calculation. These are fixed costs that will remain as long as the property is owned or until the associated debts are paid off, which is why they are critical in evaluating a borrower's financial health.