TDS ratio mortgage calculator

You can use our total debt service mortgage calculator to figure out monthly mortgage payments and total income requirements to qualify for a mortgage under a variety of different scenario's.

Now that we know what your monthly mortgage payment will be. Lets figure out what your GDS (Gross debt service) and TDS (Total debt service) ratio's will be.
 * Monthly mortgage payment
Enter one of the three calculated "Monthly mortgage payment" values from above.
(As calculated above)
 * Monthly property taxes (Residential properties)
To arrive at a rough estimate use the following calculations...
Brampton (Asking price x 1.2% divided by 12)
Mississauga (Asking price x 0.98% divided by 12)
Toronto (Asking price x 0.75% divided by 12)
 * Monthly heating costs
If unknown. Enter $100.00 which is the industry standard.
  1/2 the monthly condo fee
Condo fees can vary greatly from one building to another due to varying ammenities and services which are included in the fee. If known. Divide the monthly condo fee in half and enter the value. If unknown. Multiple the square footage of the unit by $0.25 and use that value.
(If applicable)
  Other monthly payments
Add up all of your regular monthly payments due on debt obligations such as car loans/leases, student debt, credit cards, personal loans etc and enter in the value. (Tip: For credit cards use 3% of the total amount outstanding on all cards).

Gross monthly household income
Combine the gross annual salaries (Before taxes are deducted) of the mortgage applicant(s) and divide by 12. If two of you are buying the home, make sure you include both of your salaries.

Your GDS ratio
Lenders prefer a GDS % ratio equal to or less than 35%. If it is more than 35% it could prove difficult to get a mortgage.
Your TDS ratio
Lenders prefer a TDS % ratio equal to or less than 42%. If it is more than 42% it could prove difficult to get a mortgage.
Gross monthly household income needed to qualify:  
(Note: As of Oct 17, 2017, buyers now need to qualify on the Bank of Canada's posted 5 year fixed mortgage rate. Call for the complete details).

Is your GDS or TDS ratio to high?

Options to decrease the ratio(s) include...
  • Increasing your down payment.
  • Reducing your overall debt.
  • Increasing your household gross income.
  • Or purchasing a less expensive home.

Ready to start shopping for a new home?

Lets get started!

Disclaimer: Accuracy of our mortgage calculator is not guaranteed. We accept no responsibilty for any loss arising from its use. To ensure you are working with the most update values and information. Please contact a mortgage advisor.

Understanding GDS & TDS ratio's

Most lenders use two primary calculations to determine if you fall within their lending guidelines when applying for a mortgage. Gross debt service ratio, and total debt service ratio.

Gross debt service ratio (GDS) represents the percentage of the borrower's income required to cover payments for housing related costs. These costs include mortgage payments (principal & interest), property taxes, heating costs, and half of the monthly condo fee (If applicable).

Total debt service ratio (TDS) represents the percentage of a borrower's income required to service both housing related costs (GDS), and all other debt obligations such as car loans, student loans, credit cards, personal loans etc etc.

In general. Lenders will provide mortgage funds as long as the borrower's GDS ratio is not more than 35% and their TDS ratio is not more than 42%.

But the Canada Mortgage & Housing Corporaton (CMHC) will insure mortgages up to 39% GDS. So if a borrower has a good credit history and a 680 plus credit score. A lender might be willing to bump the max GDS % ratio up to 39% and provide the necessary mortgage funds.

With the mortgage marketplace being extremely competitive. Ultimately, there are no hard & fast rules. If you're getting ready to buy a home, and would like some assistance on getting approved for a mortgage? (Traditional or non-traditional).

Just drop me a line and i'll put you in touch with a very experienced mortgage broker, who will shop your requirements amoungst 50 different lenders, to access the mortgage that best suits your needs.

Sales Commission Cash Back Rebate (Conditions and Limitations)
* Rebates are not available by all registrants of HomeLife Classic Realty Inc., Brokerage. Rebate guaranteed and paid personally by Robert Kirkwood and not HomeLife Classic Realty Inc., Brokerage. Rebate to be paid to buyer within 30 days of closing and requires buyer to enter into an exclusive Buyer Representation Agreement and purchase a home offering a minimum of 1.5% commission or dollar value equivalent to HomeLife Classic Realty Inc., Brokerage. The commission rebate percentage (%) is determined by a sliding scale from 20% to 50% based on the number of showings prior to purchasing a home. The Rebate is calculated on property purchase price NET of HST (if applicable) times (x) commission percentage (%) offered by seller or builder times (x) commission rebate percentage (%). Rebate is only paid to the name(s) registered on the agreement of purchase and sale. Rebates are not offered on pre-construction VIP condo sales or properties personally listed for sale by Robert Kirkwood, or on properties where a referral fee is being paid to another brokerage. Rebates are not valid with any other offers or promotions.

Listing Fee's (Conditions and Limitations)
1Advertised Rates are not available by all registrants of HomeLife Classic Realty Inc., Brokerage. 2Compared with hypothetical 2.5% listing fee commission rate. HST is applicable on all commission fees.

Not intended to solicit parties already under contract with a brokerage.