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HomeHow To Qualify For More In 2025
Lenders use Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine affordability.
Paying down small debts can significantly boost qualifying power.
Credit scores directly affect both approval and rates offered.
Rental income and self-employed income can be used strategically if documented properly.
The safest strategy is to increase qualifying without stretching beyond what feels comfortable.
Your Path to Smarter Home Financing
| Gross Debt Service (GDS) | Total Debt Service (TDS) |
|---|---|
Housing costs ÷ gross income. Should generally be ≤ 39% | Housing + all debt payments ÷ gross income. Should generally be ≤ 44% |
Want me to run your GDS and TDS ratios with today’s rules? I can model your numbers in minutes.
Some lenders allow rental income from suites or investment properties to help qualify. Policies differ:
Offset method:
Add-back method:
Curious if your property could qualify with rental income? I can review lender policies with you.
Some lenders offer alternative programs (stated income, bank statement programs) but often with higher rates.
Are you self-employed? I can show you which lenders are self-employed friendly and what documents you’ll need.
| Strategy | Impact |
|---|---|
Pay off small revolving debts | Improves TDS ratio |
Raise credit score | Better rates, smoother approval |
Add co-borrower or guarantor | Increases total income |
Consider rental income | Can expand approval significantly |
Structure self-employed income cleanly | Opens access to more lenders |
Credit score impacts bothapproval andrates.
Rental income andself-employed structuring can expandborrowing power.
The goal is to qualify strategically, not stretch dangerously.
If you’d like, I can run your qualifying numbers with today’s BC rules so you know your safe budget before you shop.
Your Path to Smarter Home Financing
What is GDS?
Percentage of income for housing costs (mortgage, taxes, heat, 50% condo fees). Rule of thumb ≤ 39%.
What is TDS?
Percentage of income for all debts including housing. Rule of thumb ≤ 44%.
Example: Condo in Burnaby
GDS = 41% → Over limit
Most lenders want 680+ for best rates.
600–679: possible with higher rates
600: usually requires alternative lenders
Quick Wins:
Offsets: (50–80% reduces expenses)
Add-back: (50% added to income)
Example: Surrey suite rents for $1,500.
Offset at 50%: = $750 reduction to housing costs.
Docs needed: lease, rent appraisal, proof of deposits.
Docs lenders want:
Alternative options: stated income programs, bank statement programs (higher down payment/rates).
Tips: separate business/personal accounts, file taxes on time, prep 2–3 years of clean financials.
