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.