Canada GDS / TDS Calculator

GDS and TDS limits

Housing costs in GDS include your mortgage payment, property tax, heating and 50% of any condo fees. TDS adds every other monthly debt obligation.

Estimates only and not a lending decision. Lenders also apply the federal stress test and review credit and income.

Frequently Asked Questions

What is GDS?

Gross Debt Service is your monthly housing costs (mortgage, property tax, heating and 50% of condo fees) divided by your gross monthly income. Lenders generally want it at 32% or less.

What is TDS?

Total Debt Service adds your other monthly debt payments (car loans, student loans, credit cards, lines of credit) to your housing costs, divided by gross monthly income. The usual limit is 40%.

What ratios do lenders accept?

Conventional limits are GDS 32% / TDS 40%. With strong credit and an insured mortgage, some lenders stretch to about GDS 39% / TDS 44%. Above that, approval becomes unlikely.

How can I improve my ratios?

Pay down or consolidate other debts, increase your down payment to lower the mortgage payment, choose a longer amortization, or add a co-borrower’s income.

Is this the same as a US DTI?

It is the Canadian equivalent. US lenders use front-end (28%) and back-end (36–43%) DTI ratios; Canada uses GDS (32%) and TDS (40%), and includes heating in the housing figure.