Gross Debt-Service (GDS) Ratio
The percentage of gross annual income that is needed to pay all costs associated with housing. The most common formula is:
mortgage payment + property taxes + heating + 50% of condo fees (if applicable) / gross household income.
The GDS ratio is capped by most lenders at 39% for the best borrowers.
About The Author
Don Scott
Don Scott is the founder of a challenger mortgage brokerage that is focused on improving access to mortgages. We can eliminate traditional biases and market restrictions through the use of technology to deliver a mortgage experience focused on the customer. Frankly, getting a mortgage doesn't have to be stressful.
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