When calculating the TDS ratio, which of the following is included?

The Total Debt Service (TDS) ratio calculation includes all of the borrower's monthly housing-related costs along with other debts. This means that to accurately assess the TDS ratio, you must consider the monthly mortgage payment, property taxes, heating costs, and any additional debts such as credit card payments, personal loans, and any other monthly financial obligations.

Incorporating this comprehensive array of financial responsibilities provides a clearer picture of the borrower’s ability to manage their total debt load. Financial institutions utilize the TDS ratio to determine the risk associated with lending money, ensuring that borrowers are not over-leveraging themselves. By including all relevant costs and debts in the TDS calculation, lenders can better assess the viability of a mortgage application.