What Are GDS and TDS — and Why Should You Care?

When it comes to getting your clients approved for a mortgage, debt servicing ratios are key.

🔹 GDS (Gross Debt Servicing) measures how much of a borrower’s income goes toward housing costs like mortgage payments, property taxes, heat, and condo fees. It shouldn’t exceed 39% of their gross monthly income.

🔹 TDS (Total Debt Servicing) includes all monthly debt obligations — from credit cards to car loans and child support. This total shouldn’t exceed 44% of their income.

Understanding GDS and TDS can help you guide clients more confidently, meet RFA’s requirements, and unlock their full borrowing potential.

💡 Need help calculating it? Reach out to your RVP — we’ve got your back!