The percentage of your gross household income required to cover housing costs, including mortgage payments (principal and interest), property taxes, heating costs, and 50% of condo fees if applicable. Most lenders require your GDS to be no higher than 39%, meaning your housing costs should consume less than 39% of your pre-tax income.
Why It Matters
GDS is one of two key ratios lenders use to determine how much you can borrow. If your GDS exceeds 39%, most lenders will reduce the mortgage amount they're willing to offer. Understanding this ratio helps you set a realistic home-buying budget, especially in the GTA where housing costs are high relative to incomes.
Related Guides
Need Guidance?
Get a second opinion on your real estate situation. No pressure, no obligation.
The RAZZ Report
Market insights and practical advice delivered to your inbox.