GDS
Gross Debt Service Ratio
Qualification & RatiosLast updated: September 2026
What is GDS (Gross Debt Service Ratio) in Canadian mortgages?
Monthly housing costs divided by gross monthly income. Includes mortgage payment, property tax, heating, and 50% of condo fees.
How is GDS calculated?
(Mortgage Payment + Property Tax + Heating + 50% Condo Fees) ÷ Gross Monthly Income
What is the GDS limit for Canadian mortgages?
≤ 39%
GDS example
If housing costs are $2,000/month and income is $6,000/month, GDS = 33%.
Related qualification & ratios terms
TDSAll monthly debt payments divided by gross monthly income. Includes housing costs plus credit cards, car loans, lines of credit, and other debts.LTVTotal mortgage debt divided by property value. Determines if CMHC insurance is required and which lenders qualify.Stress TestBorrowers must qualify at a higher interest rate to ensure affordability if rates rise. Calculated as the maximum of contract rate + 2% or 5.25%.Beacon ScoreCanadian credit score system (300-900 scale). Higher scores qualify for better rates and lenders.DSCRUsed for rental/investment properties. Measures whether rental income covers the mortgage payment. A DSCR ≥ 1.0 means the property is cash-flow positive.NOACRA document confirming a filed tax return has been processed. Shows declared income and any taxes owed or refunded. Required by A-lenders to verify self-employed income.
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