TDS stands for "gross debt service."

A borrower's GDS ratio equals his/her monthly cost of carrying a mortgage divided by total gross monthly income.

In other words, it's the percentage of income needed to cover basic housing costs.

Prime lenders commonly underwrite mortgage applications by assessing a borrower's GDS ratio. Typically, lenders want to see GDS ratios below 39%.

In some cases, non-prime lenders allow unlimited GDS ratios so long as the borrower has sufficient equity (down payment) and a marketable property. Solid credit doesn't hurt for GDS exceptions, either.

You've successfully subscribed to
Great! Next, complete checkout for full access to
Welcome back! You've successfully signed in.
Unable to sign you in. Please try again.
Success! Your account is fully activated, you now have access to all content.
Error! Stripe checkout failed.
Success! Your billing info is updated.
Error! Billing info update failed.