GDS/TDS Calculator

What Are GDS and TDS?

When applying for a mortgage or loan, lenders want to make sure you can comfortably manage your monthly payments. This is where GDS (Gross Debt Service) and TDS (Total Debt Service) come in.

• GDS looks at how much of your monthly income goes towards your housing costs, like your mortgage payment, property taxes, and heating bills. Lenders typically want this to be below 32-39% of your gross income.

• TDS includes all of your monthly debt payments—housing costs plus any other debts (like credit cards or car loans). Lenders usually aim for this to be below 40-44% of your income.

These ratios help lenders assess whether you can afford the loan and avoid financial stress. A lower GDS and TDS mean you’re more likely to manage your payments comfortably.

What If My GDS is Over 39% or My TDS is Over 44%?

Don’t worry if your GDS or TDS exceeds the typical limits—there’s still hope! While lenders generally prefer GDS to be under 39% and TDS under 44%, these numbers are not set in stone. We can work together to review your situation and explore different options to make your numbers work. Whether it’s adjusting the loan terms, finding other ways to reduce debt, or even looking at alternative solutions, we’re here to help you navigate the process and find the best path forward.

The Brokerage I work for works with 100+ lender partners, so I'm able to support up to 45% and 47% for GDS and TDS ratios, and up to 50% for both under certain conditions e.g. a downpayment of 35%.