Optimizing Your GDS and TDS Ratios Before Submitting Files

Gross Debt Service and Total Debt Service ratios dictate your borrowing ceiling. Here is how underwriters evaluate your file before greenlighting capital.

Gross Debt Service (GDS) and Total Debt Service (TDS) ratios are the fundamental metrics lenders use to determine whether a mortgage application fits within risk parameters.

GDS measures housing-related costs (mortgage payments, property taxes, heating) relative to your income, while TDS factors in all other debt obligations like car loans and credit cards.

Lowering your revolving debts before application submission can dramatically improve your ratios, allowing you to secure a higher borrowing ceiling with absolute peace of mind.