Debt-to-Income (DTI) Calculator (Canada)

How this calculator works

Canadian lenders express capacity as ratios. GDS (gross debt service) is housing costs as a share of gross monthly income. TDS (total debt service) adds every other debt payment, including the new one. For mortgages, lenders commonly look for GDS around 32–39% and TDS around 40–44%, with the exact limits set by the lender and, for insured mortgages, by the mortgage insurer's rules.

When a co-signer is added, their income counts — but so do their existing debts and the new payment. A co-signer with high income and low debt improves the ratio; one with high income but heavy debt may not.

Assumptions and limits

This is an educational estimate produced entirely in your browser. It is not an offer of credit, an approval, or financial advice, and it does not use your real credit file. Lenders apply their own policy, pricing, and verification.

Frequently asked questions

What is a good debt-to-income ratio in Canada?

As a rule of thumb, total debt service at or below about 40% is comfortable for most unsecured lending, and 44% is often cited as the upper end for mortgages. Each lender sets its own limit.

Is it gross or net income?

Gross — income before tax and deductions — is what lenders generally use for these ratios.

Do all debts count?

Generally yes: credit cards (usually the minimum payment), car loans, student loans, lines of credit, and child support all count toward TDS.

Does adding a co-signer improve the ratio?

It can, because the co-signer's income is added. But their debts and the new payment are added too, so the net effect depends on their whole picture.

Sources

Financial Consumer Agency of Canada — Mortgages — Government of Canada (FCAC)
Financial Consumer Agency of Canada — Loans — Government of Canada (FCAC)
Canada Mortgage and Housing Corporation (CMHC) — Government of Canada (CMHC)

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