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Total monthly housing costs
Your total monthly housing costs should not be more than 39% of your gross household income. This percentage is also known as the gross debt service (GDS) ratio. You may still qualify for a mortgage even if your GDS ratio is slightly higher. A higher GDS ratio means you’re increasing the risk of taking on more debt than you can afford.
Your monthly housing costs include:
- mortgage payments
- property taxes
- heating
- 50% of condo fees (if applicable)
Total debt load
Your total debt load should not be more than 44% of your gross income. This includes your total monthly housing costs plus all of your other debts. This percentage is also known as the total debt service (TDS) ratio.
You may still qualify for a mortgage even if your TDS ratio is slightly higher. A higher TDS ratio means you’re increasing the risk of taking on more debt than you can afford.
Other debts may include your monthly payments for your:
- credit card balances
- car loans
- lines of credit
- student loans
- child or spousal support
- any other debts
