04/08/2026
Thinking about buying a home in Canada?
One of the biggest factors lenders look at is your debt servicing ratios — basically, how much of your income goes toward debt.
Here’s a quick breakdown:
Gross Debt Service (GDS) Ratio
This measures how much of your income covers housing costs (mortgage, property taxes, heating, etc.).
Typically should be ≤ 39%
Total Debt Service (TDS) Ratio
This includes all your debts (housing + credit cards, car loans, student loans).
Typically should be ≤ 44%
Why it matters:
The lower your ratios, the more likely you are to qualify for a mortgage — and potentially at better rates.
Example:
If you earn $6,000/month, your total debt payments should ideally stay under about $2,640.
Pro tips:
• Pay down high-interest debt first
• Avoid taking on new loans before applying
• Increase your income (even side gigs help!)
Understanding these ratios can be the difference between approval and disappointment.
Save this if you’re planning to buy soon
