GDS & TDS
GDS (gross debt service ratio)
is a percentage of the household income being allotted for house related funds. Example: mortgage payment, property tax, strata fees, pad rent, and heat. Most lenders have a max GDS of 39% of your household income.
TDS (total debt service ratio) is a percentage of your household income that includes your GDS plus any other liability payments you have. Example: vehicle loans, credit cards, line of credit, child or spousal support ect. Most lender have a max TDS ratio of 44% of the household income.