GDS – Gross Debt Service – It is a financial metric used by lenders to assess a borrower’s ability to afford a mortgage. GDS represents the percentage of a borrower’s gross income that is used to cover housing-related expenses, including

  • mortgage payments,
  • property taxes,
  • and heating costs.

Lenders typically have maximum GDS ratio requirements for mortgage applicants.

In Canada, a common guideline is that the GDS ratio should not exceed 32% of a borrower’s gross income.