# How can I improve my GDS and TDS ratios to qualify for a larger mortgage?

> Improving your GDS and TDS ratios involves reducing debt or increasing income, potentially qualifying you for a larger mortgage.

Category: Regulatory
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/regulatory/how-can-i-improve-my-gds-and-tds-ratios-to-qualify-for-a-larger-mortgage

## Answer
Improving your GDS and TDS ratios involves reducing debt or increasing income, potentially qualifying you for a larger mortgage. Paying down existing debts, like credit cards, will lower your monthly obligations; consider exploring options for increasing your income.

## Institutional highlights
- Your GDS and TDS are key to showing lenders you can handle your mortgage payments.
- When you renew your mortgage, lenders will look at your finances as if you're a new customer.
- Lenders will check if you can still afford your payments if interest rates go up or your income goes down.
- No specific minimum credit score of 600 is mandated by OSFI or CMHC; lenders have varying requirements, often higher than 600.
- For mortgages with a small down payment, lenders usually want your GDS to be below 39% and your TDS below 44%.

## Related guide
- https://ratellow.com/guides/gds-tds-qualifying-ratios

## Sources
- Debt service coverage — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.3
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- 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