# Debt Service Ratios and Interest Rate Stress Testing

> Qualifying ratios for newcomers follow standard B-20 rules:.

Category: Newcomers
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/newcomers/debt-service-ratios-and-interest-rate-stress-testing

## Answer
| Ratio | Maximum | What's Included |
|---|---|---|
| **GDS (Gross Debt Service)** | 39% | Mortgage + property tax + heat + 50% condo fees |
| **TDS (Total Debt Service)** | 44% | GDS + all other debt payments |
| **Stress test rate** | Contract + 2% or 5.25% | Higher of the two applies |

International debt obligations (car loans, student loans abroad) must be disclosed and are included in TDS calculations.

## Related guide
- https://ratellow.com/guides/newcomer-canada-mortgage

## Sources
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- 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
- Canada Guaranty — https://www.canadaguaranty.ca/lenders/underwriting-guidelines/