Glossary · Financing
What is Debt service ratio?
Debt service ratios measure how much of your income goes toward housing and total debt — key to mortgage approval.
Definition
Also known as: GDS, TDS
Lenders look at your Gross Debt Service (GDS) ratio — housing costs as a share of income — and Total Debt Service (TDS) ratio, which adds your other debts. Lower ratios mean a stronger application.
Keeping these ratios within accepted limits is essential to qualifying. Paying down debt or increasing your down payment can improve them.
When debt service ratio matters
- Understanding how much you can borrow
- Improving your mortgage application
- Budgeting before buying
With Homeprint
How Homeprint helps with debt service ratio
Homeprint helps you keep a clear picture of your home-related costs as part of your overall finances.
- Keep every related document in one secure place
- Track your home's value and finances over time
- Stay connected with trusted neighbourhood experts
Debt service ratio — FAQ
Keep learning
Related terms
Own your home with confidence
Create your free Homeprint account and bring everything about your home together.