Updated: May 28, 2021
Total Debt Servicing or Total Debt Servicing Ratio.
This is the percentage of your gross monthly household income that covers all your monthly debt obligations. To calculate this, you divide your GDS (monthly housing costs) plus any additional monthly debt payments by your gross monthly income. You typically want your debt obligations to be at or under 40% of your gross monthly income.
Take a few minutes to look at your GDS and TDS? Are you at, over, or below the recommended 35%/40% amounts?