# How do lenders assess my ability to repay the mortgage with a gifted down payment?

> Lenders meticulously assess your income and debt serviceability to gauge your capacity to manage mortgage payments.

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/how-do-lenders-assess-my-ability-to-repay-the-mortgage-with-a-gifted-down-payment

## Answer
Lenders meticulously assess your income and debt serviceability to gauge your capacity to manage mortgage payments. They rely on key debt serviceability metrics, including the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. These ratios are calculated conservatively, factoring in potential fluctuations in financial and economic conditions, and/or higher interest rates. Your employment status and history, income, and existing credit facilities undergo thorough verification.

## Institutional highlights
- Lenders have a system to check if you can afford your mortgage payments.
- They'll look at your income and debts to make sure you can comfortably manage your mortgage; these are called GDS and TDS ratios.
- Lenders calculate these ratios carefully to make sure you can handle different financial situations.
- You'll need to prove your income with documents that confirm where you work and how long you've worked there.
- To qualify for a mortgage without mortgage insurance, you'll need to prove you can afford payments at a higher interest rate than you're actually paying.

## Related guide
- https://ratellow.com/guides/gifted-down-payment-rules

## Sources
- Property value used for the LTV ratio — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017
- 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
- IV. Other guidance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#4.0