How it works
DSR (Debt Service Ratio) measures how much of your income goes to servicing all your loans combined. Banks typically cap new lending so your DSR doesn't exceed the regulatory ceiling (often 40%). This tool converts your remaining repayment capacity into an approximate loan limit using a ~4.2x multiplier (based on a 5.5% rate, 5-year term). Actual bank limits vary by underwriting criteria.
FAQ
Q. How is DSR different from DTI?
A. DTI counts mortgage principal+interest plus only the interest on other loans; DSR includes principal and interest on every loan, making it stricter.