DEBT SERVICE RATIOYour "debt service ratio" is used by lending institutions to gauge your ability to repay a loan before the loan is actually granted to you.In general, lending institutions would prefer that your total loan amount does not exceed 35 per cent (35%) of your total income. This 35 per cent is called the debt service ratio.Your debt service ratio at any piont in time is calculated as follows: Total owed (for a period)Net Income (for the same period)

 

 

 

 

 

 

 

 

 

 

 

DISCLAIMER

Please be advised that the result of this test is simply to be used as a personal guide for assessing yourself. These figures should not be interpreted as qualification or eligibility for credit from a licensed financial institution.

 

 

 

 

 

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