Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are GDS and TDS? How is it calculated?

April 26, 2017calculated GDS TDS

0

Posted

What are GDS and TDS? How is it calculated?

1 Answer

0

Posted

GDS means Gross Debt Service. The Gross Debt Service is the maximum percentage of your gross income allowed to pay the costs of carrying your home. This ratio combines your principal and interest mortgage payment, property taxes, heating and condo fees, if applicable. The allowable GDS ratio is 32%. TDS means Total Debt Service. The Total Debt Service is the maximum percentage of your gross income allowed to pay the costs of carrying your home, plus other debts. This ratio combines everything from the GDS as well as any other outstanding debt.