Gross Debt Service
Gross Debt Service (GDS) is a lender calculation that compares your income to housing-related costs such as mortgage payments, property taxes, heating costs, and (when applicable) condominium fees. It focuses only on housing expenses, not other debt.
Lenders use GDS alongside Total Debt Service (TDS) to assess affordability. If GDS is too high, the borrower may qualify for a smaller mortgage amount or need changes such as a larger down payment.
Why this matters:
Many borrowers assume approval is mostly about credit score, but affordability ratios are a key gatekeeper. Knowing your GDS helps you plan a purchase price that’s realistic.
Related Mortgage Terms
Often confused with:
Total Debt Service (TDS) — TDS includes housing costs plus other debts.
Closely related:
Debt Service Ratio — The umbrella concept that includes GDS and TDS.
Interest Rate — Higher rates can raise payments and push ratios up.
Next step:
Total Debt Service (TDS) — See how other debts affect qualification.