The Gross Debt Service (GDS) ratio measures:
A)your monthly mortgage payment, including any outstanding debt as a percentage of gross monthly income.
B)your monthly mortgage payment, including principal, interest, heating, and taxes as a percentage of gross monthly income.
C)your monthly mortgage payment as a percentage of gross monthly income.
D)your annual mortgage payment, including any outstanding debt, as a percentage of gross annual income.
E)your annual mortgage payment, including principal, interest, heating, and taxes, as a percentage of gross annual income.

Question

Quizplus · Accepted Answer

The Gross Debt Service (GDS) ratio measures your ability to pay your monthly mortgage payment, including principal, interest, heating, and taxes, as a percentage of your gross monthly income. It takes into account all the necessary expenses that come with owning a home and ensures that you have enough income to cover the expenses. This ratio is one of the key factors that lenders use to evaluate your mortgage application.

The Gross Debt Service (GDS) Ratio Measures