Glossary term
TDS ratio
TDS ratio, or total debt service ratio, compares housing costs plus other debt obligations with gross household income.
Plain meaning
What TDS ratio means
TDS ratio is a mortgage qualification measure. It starts with housing costs and adds other debt obligations, then compares the total with gross income.
Formula role
How OpenBook uses it
Mortgage qualifier calculators estimate housing costs, add entered debt payments, and compare the result with gross household income. The result is then compared with the selected TDS limit.
TDS is broader than GDS ratio because it includes non-housing debt payments.
Common boundary
Debt inclusion can differ
Credit cards, car loans, lines of credit, student loans, support payments, and other debts may be treated differently by lender or insurer policy. OpenBook calculations are screening estimates.
Primary references