The percentage of your gross household income required to cover all debt obligations, including housing costs (mortgage, taxes, heating, half of condo fees) plus car loans, student loans, credit card payments, and any other recurring debt. Most lenders require your TDS to be no higher than 44%.
Why It Matters
TDS captures your full financial picture, not just housing costs. Even if your housing costs are within the GDS limit, high car payments or outstanding student debt can push your TDS over the threshold and reduce how much mortgage you qualify for. Paying down other debts before applying can increase your buying power.
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