What it is
DSCR stands for debt service coverage ratio. These programs generally focus on whether qualifying rent supports the property’s debt payments, while still reviewing the borrower and property.
Who it may suit
Investors buying or refinancing a rental, including Canadian and U.S. borrowers where the lender’s program allows.
Typical uses
- Purchase a long-term or eligible short-term rental
- Refinance an existing investment loan
- Explore cash-out financing where eligible
Purchasing a rental
Start with the price, expected rent, property expenses and funds available for closing.
Discuss a purchaseRefinancing a rental
Share the current value, purchase date, loan balance and whether your goal is replacing debt or accessing eligible equity.
Estimate refinance equityDiscuss a refinance
More detail, when you need it
What is included in the coverage calculation?
Many residential programs compare qualifying rent with principal, interest, taxes, insurance and association dues. Commercial programs may use net operating income and debt service. Confirm the lender’s method.
What do LTV and seasoning mean?
Loan-to-value (LTV) is the loan amount compared with the property’s value. Seasoning is a lender’s required period of ownership, loan history or stabilized performance. Neither has one universal limit.