Investor
DSCR
Also known as: Debt Service Coverage Ratio
Debt Service Coverage Ratio. Net operating income (NOI) divided by annual debt service on the property's mortgage. A DSCR of 1.20 means the property generates 20% more income than its mortgage payment after operating expenses. A DSCR below 1.0 means the property doesn't cover its own mortgage from operations, and the owner subsidizes from outside cash flow.
The lender's headline metric. Different programs require different floors: 1.10 is common on conventional rental files, 1.20 to 1.30 on tighter underwriting, CMHC MLI Select can go lower with social/affordability commitments. Calculate your file's DSCR in the Rental Cash Flow Calculator.
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