This calculator uses the two key debt service ratios that Canadian lenders use to determine mortgage qualification: Gross Debt Service (GDS) and Total Debt Service (TDS).
GDS Ratio measures housing costs (mortgage payment, property taxes, heating, and 50% of condo fees if applicable) as a percentage of your gross income. Most lenders require GDS to be 39% or less.
TDS Ratio adds your other monthly debt payments (car loans, credit cards, lines of credit, student loans) to housing costs and compares that total to your gross income. Most lenders require TDS to be 44% or less.