Carrying a zero balance? Your TDS owes nothing. 1. CMHC’s official guidance says lenders calculate your TDS using your outstanding balance — not your credit limit. A zero-balance line of credit adds exactly $0 to your debt service ratio, whether the limit is $15,000 or $50,000. → $0 2. What actually moves the needle is paying down what you owe — every $10,000 you pay off removes roughly $300 per month from your TDS calculation, which can be the difference between qualifying and not. → $300/month 3. New accounts with real required payments — car loans, financing deals, buy-now-pay-later — genuinely hurt your ratios because they add real monthly obligations, unlike an untouched credit line sitting at zero. 4. With 5-year fixed rates at 4.04% as of August 2026, a half-point rate difference costs roughly $12,000 over a five-year term on a $500,000 mortgage — so knowing what actually affects your approval is worth real money. → $12,000 Full breakdown 🌐 getwealthy.blog #canadafinance #personalfinance #canadianmoneytalk #moneytips #canada
Certified Financial Planner (CFP) and Chartered Investment Manager (CIM) with over 17 years of experience in Canadian personal finance. Spent 10+ years at one of Canada's Big Five banks, the last 7 focused exclusively on high-net-worth clients. Every guide is written with the same depth I bring to real client work — Canada-specific, CRA-verified, and always free.