Your debt-to-income ratio shows how much of your income goes to debt payments. In Canada, mortgage lenders look at two versions: GDS (housing costs) and TDS (housing plus all other debts). This calculator works out both and compares them to CMHC’s limits.
Debt-to-income ratio calculatorSee your GDS and TDS ratios, the two numbers Canadian mortgage lenders use, and your debt payments as a share of income.
Income
Housing costs, per month
Other debts
Total debt service (TDS)
CMHC limit: 44%
Gross debt service (GDS)
CMHC limit: 39%
Debts only
No housing costs
How you compare
GDS and TDS, explained
| Ratio | What it includes | CMHC limit |
|---|---|---|
| Gross debt service (GDS) | Mortgage principal and interest, property taxes, heating, and 50% of condo fees | 39% |
| Total debt service (TDS) | Everything in GDS, plus all other debt payments: credit cards, lines of credit, car loans, student loans and so on | 44% |
Both ratios are divided by your gross (before-tax) income. These limits are set by the Canada Mortgage and Housing Corporation (CMHC) for mortgages with mortgage loan insurance.
How credit cards count
For TDS, CMHC tells lenders to count credit cards and unsecured lines of credit as at least 3% of the outstanding balance each month, even if your actual minimum payment is lower.
So a $4,000 card balance adds $120 a month to your debt payments. A $10,000 balance adds $300. That’s why paying down cards before applying for a mortgage can make a real difference. Our credit card payoff calculator shows what it takes.
A worked example
The calculator starts with a household earning $95,000 a year (about $7,917 a month):
- Housing: $2,100 mortgage, $300 property tax, $120 heating = $2,520 a month. GDS = $2,520 ÷ $7,917 = 31.8%.
- Other debts: $4,000 on credit cards (3% = $120), $450 car payment, $150 student loan = $720 a month.
- TDS = ($2,520 + $720) ÷ $7,917 = 40.9%. Both are under CMHC’s limits.
How to lower your ratio
- Pay down credit cards and lines of credit. Each $1,000 you pay off lowers your counted payments by $30 a month.
- Avoid new debt before applying. A new car loan or card balance raises your TDS.
- Pay off small loans. Clearing a loan with a few payments left removes the whole payment from TDS. Our debt snowball calculator can help you plan.
- Rental income can count. CMHC lets lenders count part of the rent from the property, such as a suite in the home.
Frequently asked questions
What is a good debt-to-income ratio in Canada?
For an insured mortgage, CMHC’s limits are 39% for GDS and 44% for TDS. Lower is better. Lenders may set their own limits for uninsured mortgages.
Is the debt-to-income ratio based on gross or net income?
Gross income, before tax and deductions.
Does rent count in the debt-to-income ratio?
GDS and TDS are for a mortgage you’re applying for, so lenders use the new mortgage payment instead of your rent. If you’re not buying a home, you can enter your rent to see how much of your income goes to housing and debt.
Why do lenders use a higher mortgage payment than mine?
CMHC’s guide says lenders qualify you at the greater of your contract rate plus 2% or 5.25%. That higher payment goes into GDS and TDS.
Do credit cards count if I pay them off every month?
CMHC counts card balances at 3% of the outstanding balance. Paying your cards down before you apply keeps that number low.
Related reading
- Credit utilization calculator: how much of your credit you use
- Credit card payoff calculator: the payment you need to clear a card
- Debt repayment calculator: when you’ll be debt-free
- All calculators
- Consumer proposal calculator: estimate a proposal payment
How we checked: GDS and TDS formulas, the 39% and 44% limits, the 50% condo fee rule, the 3% rule for credit cards and unsecured lines of credit, the qualifying rate, and the rental income rule all come from CMHC’s guide for lenders. This calculator uses the payment you enter, not the qualifying-rate payment, so a lender’s figures may be higher. It’s an estimate, not a mortgage approval. Sources: CMHC: Calculating GDS / TDS. Last checked October 2026.