# How do GDS and TDS ratios impact mortgage approvals, and what can borrowers do to improve them?

> Gross Debt Service (GDS) and Total Debt Service (TDS) ratios are key indicators of a borrower's ability to manage debt.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-do-gds-and-tds-ratios-impact-mortgage-approvals-and-what-can-borrowers-do-to-improve-them

## Answer
Gross Debt Service (GDS) and Total Debt Service (TDS) ratios are key indicators of a borrower's ability to manage debt. Lower ratios demonstrate greater affordability and increase the likelihood of mortgage approval. borrowers with high credit card debt can improve their TDS ratio by paying down those balances before applying. Understand CMHC's or other mortgage insurer's requirements regarding debt serviceability, and help borrowers understand how their debt impacts their ability to qualify.

## Institutional highlights
- Your GDS and TDS ratios show lenders if you can comfortably afford your mortgage and other debts.
- Lenders will look at your income and debts carefully to make sure you can handle different financial situations.
- When you apply for a mortgage, lenders consider current and possible future interest rate changes.
- The government reviews the mortgage qualifying rate each year to ensure it's appropriate.

## Related guide
- https://ratellow.com/guides/2026-renewal-cliff-survival

## Sources
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits
- 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
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1