Debt Service Ratio

Debt service ratio is the umbrella term for GDS and TDS — the two specific ratios lenders use to size your maximum mortgage. The basic idea: your housing payments shouldn't dominate your income, and your total debt obligations shouldn't either. At the federal stress-test rate, lenders cap GDS at 39% and TDS at 44% for insured mortgages (and most A Lender uninsured deals). B Lenders flex these limits — some go to 44%/50% with offsetting strengths like a large down payment or stable employment in a regulated profession. The number that matters most is your TDS at the qualifying rate — which is the contract rate plus 2% or the federal benchmark, whichever is higher. Run that math first to see how much mortgage you actually qualify for, then back into a purchase price using your down payment. The Brkrr affordability calculator does this; an experienced mortgage agent will do it with your full file.