Under CMHC's current requirements for homeowner mortgage loan insurance, what is the maximum Total Debt Service (TDS) ratio?
Correct Answer
A) 44%
CMHC states that a borrower's total debt load should not exceed 44% of gross household income. TDS counts principal, interest, property taxes, heating, half of any condo fees and payments on all other debts. The separate 39% limit applies to the GDS ratio.
Why This Is the Correct Answer
CMHC's general requirements page states that total debt load should not be more than 44% of gross household income, which is the TDS ratio.
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