Total Debt Service (TDS) Ratio

The percentage of the borrower's income that is needed to cover housing costs (as included in the GDS) plus any other monthly obligations that an individual has, such as credit card payments and car payments. The most common formula is:

mortgage payment + property taxes + heating + 50% of condo fees (if applicable) + other debt payment obligations / gross household income.

TDS is capped by most lenders at 44% for the best borrowers.