Question 1

What is the GDS ratio?

Accepted Answer

The Gross Debt Service (GDS) ratio is your total monthly housing costs — principal, interest, property taxes, and heating — divided by your gross monthly income. Most lenders cap the GDS at 39%. Staying within this limit helps ensure your housing costs are manageable relative to your earnings.

Question 2

What is the TDS ratio?

Accepted Answer

The Total Debt Service (TDS) ratio adds all other monthly debt payments (car loans, credit cards, student loans, etc.) to your housing costs and divides by gross monthly income. Lenders typically allow a maximum TDS of 44%. If your TDS is high, you may qualify for a smaller mortgage.

Question 3

Does my credit score affect affordability?

Accepted Answer

Yes — your credit score influences the interest rate you're offered, which directly affects your qualifying payment amount. A higher credit score (760+) typically unlocks lower rates, increasing the mortgage amount you can afford. Scores below 640 may restrict you to certain lenders or require a larger down payment.

Question 4

What counts as monthly debt?

Accepted Answer

Lenders include minimum monthly payments on credit cards, lines of credit, car loans, student loans, personal loans, and any other existing mortgages or rent payments. They use the minimum payment from your credit bureau report, not your actual payment amount.

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