Gross Debt Service Ratio

What is a gross debt service ratio?

Gross Debt Service Ratio Definition: The gross debt service ratio measures the cost of housing versus a borrower’s total gross income. This ratio is essential in determining how much a homebuyer’s gross income pays for housing costs and whether a buyer can afford a new home or take out a mortgage.

A gross debt service ratio is calculated by dividing the total housing costs by the amount of gross income. Housing costs include taxes, utilities, interest, and principal in this ratio. The total gross income includes the total revenue or income earned before deductions and taxes.

Jul 30 - Comparewise Mortgage Banner

Other mortgage terms:

Mortgage Help Centre:

BlogBrandsCards
How to Get a Shared Equity Mortgage
How to Save for a Mortgage Down Payment
How to Get a Joint Mortgage
How to Use a Mortgage Calculator
nowly
Equitable Bank
Homewise
Crypto.com
Credit Verify
Consolidated Credit Canada
PolicyAdvisor
Walnut Insurance
National Bank Syncro Mastercard
Capital One Guaranteed Secured Mastercard
CIBC Dividend Visa Infinite Card
PC Financial World Elite Mastercard

comparewise

Didn’t find the information you were looking for?

Send us your questions and we will get back to you.

Car loan?
Personal Loan?

Top deals await you just a short
application away!