The percentage of your gross income needed to cover all debt payments including housing costs.
TDS includes everything in GDS (mortgage, taxes, heat, condo fees) plus all other debt obligations: car payments, credit card minimums, student loans, lines of credit, child support, and any other recurring debt payments. The maximum TDS ratio for most lenders is 44%. If your GDS is within limits but your TDS exceeds 44%, you may need to pay down other debts before qualifying.
Related terms: Gross Debt Service (GDS) Ratio | Mortgage Stress Test