If you’re putting less than 20% down on a home in Canada, you’ll need to navigate a few essential terms: CMHC insurance, GDS/TDS ratios, and debt service calculators. These aren’t just numbers—they directly impact how much you can borrow, what you’ll pay, and whether your mortgage gets approved.
Here’s what you need to know about CMHC insurance costs, debt ratios, and how to use the right CMHC TDS and GDS calculators to plan your mortgage with confidence.
💼 What Is CMHC Insurance?
CMHC (Canada Mortgage and Housing Corporation) mortgage insurance protects your lender when your down payment is under 20%. While it adds to your mortgage cost, it allows more Canadians to buy homes with smaller down payments—and often better interest rates.
The CMHC insurance cost depends on how much you’re putting down. The lower your down payment, the higher the premium as a percentage of your loan. Most buyers roll this premium into their mortgage.
📘 Learn more: CMHC Mortgage Insurance
📘 Also explore: Should You Put Less Than 20% Down?
📊 What Are CMHC GDS and TDS Ratios?
When CMHC insures a mortgage, they want to make sure you can actually afford it. That’s where GDS (Gross Debt Service) and TDS (Total Debt Service) ratios come in.
CMHC Debt Ratio Guidelines:
- GDS must be 39% or less of your gross monthly income
- TDS must be 44% or less, including housing and other debts
These limits ensure you’re not overextending yourself financially.
📘 Learn more about these ratios in our article:
Understanding CMHC Debt Ratios
And for a more detailed breakdown of TDS, check out:
Unravelling TDS – An In-Depth Look at Canadian Mortgages
🧮 Using CMHC GDS and TDS Calculators
Calculating your GDS and TDS ratios can help you understand how much home you can actually afford. Whether you’re planning ahead or getting ready to apply for a mortgage, these tools are essential.
We recommend using:
These calculators can help you estimate:
- How much you can borrow
- How your debts affect your qualification
- Whether you fall within CMHC’s lending guidelines
✅ Final Thoughts: Be Informed Before You Apply
Understanding your CMHC insurance cost and using a GDS/TDS calculator helps you avoid surprises and puts you in a stronger position when applying for a mortgage.
At The Local Broker, we’re here to help you run the numbers, compare your options, and get approved with confidence.
Need help interpreting your results or planning your next step?
Contact us today for friendly, expert advice.
