Let's crunch some numbers!
Figuring out your GDS (Gross Debt Service) and TDS (Total Debt Service) ratios can really help you understand what you can afford. Here’s a quick breakdown:
GDS shouldn't be more than 39%. It's all about your housing costs (think mortgage, property taxes, heating, and maybe condo fees) versus your gross income.
TDS includes all that plus your other debts (like credit cards, car loans, etc.) and should stay under 44%.
Want to play with the numbers and see where you stand? Check out CMHC’s handy calculator!
cmhc-schl.gc.ca/consumers/home-buying/calculators/debt-service-calculator