# How Will Lenders Assess My Borrowing Capacity?

> Lenders focus on your ability and willingness to repay debt, looking beyond just income.

Category: Investor
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/investor/how-will-lenders-assess-my-borrowing-capacity

## Answer
Here's a summary of the key debt service ratios:

| Ratio | Limit | 
|---|---|
| Gross Debt Service Ratio (GDSR) | 39% |
| Total Debt Service Ratio (TDSR) | 44% |

## Institutional highlights
- Lenders want to make sure you're both willing and able to repay your mortgage.
- Lenders will look at what you own, what you owe, your living costs, and any other regular payments you make.
- At least one borrower needs a credit score of 600 or higher to qualify for a mortgage.
- When calculating if you can afford your mortgage, lenders use either your mortgage interest rate plus 2%, or 5.25%, whichever is higher.

## Related guide
- https://ratellow.com/guides/multi-unit-financing-rules

## Sources
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Property value used for the LTV ratio — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017