Guide
Debt-to-income ratios (GDS and TDS) at today's stress-test rate
Short answer
Lenders cap two ratios. GDS (housing costs divided by gross income) can be at most 39% for an insured mortgage, and TDS (housing plus other debts divided by income) at most 44%. Both are measured at the stress-test rate, the greater of your rate plus 2 points or 5.25%.
GDS and TDS
GDS counts principal and interest at the qualifying rate, property tax, heating and half of any condo fees. TDS adds your other debt payments: car loans, student loans, credit cards and lines of credit.
Source: CMHC, Calculating GDS / TDS. Checked .What each income supports
| Household income | Max housing cost (GDS 39%) | Max mortgage | Actual payment at 4.34% |
|---|---|---|---|
| $80,000 | $2,600.00 | $333,000 | $1,814.95 |
| $120,000 | $3,900.00 | $530,000 | $2,887.42 |
| $160,000 | $5,200.00 | $727,000 | $3,959.90 |
| $200,000 | $6,500.00 | $924,000 | $5,032.37 |
| Household income | $120,000 a year |
|---|---|
| Property tax + heating | $400 a month |
| Qualifying rate | 6.34%4.34% contract + 2 points, floor 5.25% |
| 39% of monthly income | $3,900.00 |
| Left for principal and interest | $3,500.00 |
| Maximum mortgage | $530,00025-year amortization, no other debts |
The qualifying rate is what limits you, not the rate you'll pay. Run your full numbers on our affordability calculator.
How to improve your ratios
- Pay off a car loan or card balance before applying.
- Add a co-borrower's income.
- A longer amortization lowers the payment (30 years is available on insured mortgages only to first-time buyers and new builds).
What this means for you
- Pay down debts first: every monthly payment you remove raises what TDS allows.
- Count condo fees: lenders include half of them in both ratios.
- Test your own numbers: use our affordability calculator.
Frequently asked questions
What GDS and TDS do lenders allow?
CMHC's maximums for insured mortgages are GDS 39% and TDS 44%. Uninsured lenders set their own, often similar.
Primary sources
- CMHC — Calculating GDS / TDS. Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- Department of Finance Canada — Statement on the Canadian housing market (insured qualifying rate) (effective December 12, 2023). Checked .