What is Gross-Debt-Service (GDS) Ratio?

The gross-debt-service ratio is used by lenders to determine the maximum amount of the borrower's gross income that can go towards housing costs.  This is for the property on the application, known as the subject property, and doesn't include any other properties owned.

The maximum gross-debt-service (GDS) ratio is 39% of your total gross income.  This ratio may be reduced to 32% for borrowers with lower credit scores.

The subject property expenses include mortgage payment (principal and interest repayment), property taxes, heating cost, and any strata fees if applicable.

Let's look at John Snow who make has a current salary of $84,000 / yr ($7,000/month)

Mortgage Payment: $1,418/month

Taxes: $240/month ($2,880/Yr)

Heating: $100/month

Strata Fees: $340/month


$1,418 (P+I payment) + $240/month (taxes) + $100/month (heat) + $340/month (strata)

$7,000 (Gross monthly income)

= 29.97 %

Jon Snow would have a GDS of 29.97 which means he would qualify to purchase this property.

If you have any mortgage questions, contact Brent today or book a call-back time here.

Gross-debt-service ratio