Debt Coverage Ratio

Glossary of Terms Related to Commercial Mortgages and Loans

The ratio of the income produced by a property to the monthly cost of a loan on the property. For instance, the debt-servicing ratio of a loan requiring monthly payments of $5,000 on a property that produces $7,000 per month in revenue would be 1.40. Also called Debt Servicing Ratio (DSR), or Debt Coverage Servicing Ratio (DCSR).

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