TDS ratio (total debt service ratio)

What is the TDS and what does it mean?

A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment of whether a potential borrower is already in too much debt. More specifically, this ratio shows the proportion of gross income that is already spent on housing-related and other similar payments. The upper limit is 40%.

Here is is : Mortgage payment + Property Taxes + Heating + lines of credit + other debt
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Gross income

Note: Let’s say you have a line of credit for $100,000 (zero balance) the bank will look at that and assume you will use it.
So $100,000 X 3% = $3,000 is what you will pay per year.