Sentences with phrase «of debt servicing ratio»

Regardless of your debt servicing ratio, you need to know that you can comfortably afford your monthly payments (both principal and interest) now and in the future and that you will be able to repay your debt within a reasonable period of time.

The country also has a high level of debt servicing ratio, which made its banking system more vulnerable.

Not exact matches

But he points to a report from the Parliamentary Budget Officer released earlier this year showing that, since 2009, the debt service ratio — a measure of income spent to pay debt — has remained steady at around 14 per cent, not much higher than the long - term average.

But the same PBO report projects the debt service ratio will rise to an all - time high of 16.3 per cent by the end of 2021.

And last month, an international financial group owned by the world's central banks said Canada's credit - to - gross - domestic - product and debt - service ratios show early warning signs of potential risk to the domestic banking system in the coming years.

That is, when debt service ratios are calculated using the discounted mortgage rates actually charged by banks (about 125 percentage points below posted rates), the average Canadian homeowner is paying just 25 % or so of income on mortgage payments, far below the 32 % benchmark used for mortgage - insurance qualification.

The debt - service ratio in both Russia and Turkey were also showing signs of risk, at 1.8 per cent and 6.1 per cent, respectively.

The fresh numbers come as an international financial group owned by the world's central banks says Canada's credit - to - gross - domestic - product and debt - service ratios show early warning signs of potential risk to the banking system in the coming years.

Your debt - service coverage ratio, also known as the debt coverage ratio, is the ratio of cash a business has available for servicing its debt, which includes making payments on principal, interest and leases.

Meanwhile, the total household debt service ratio, measured as total obligated payments of principal and interest as a proportion of household disposable income for both mortgage and non-mortgage debt, remained flat at 13.8 per cent in the fourth quarter.

While the level of mortgage arrears is still low by historical standards, a rising debt - service ratio could signal that's about to change.

Corporate gearing ratios remain conservative by historical standards and debt servicing costs remain low, reflecting the relatively low level of interest rates.

The ongoing accumulation of household debt has led to a further increase in the debt - servicing ratio; interest payments as a proportion of disposable income rose to 9.3 per cent in the September quarter (Graph 23), and are expected to rise further.

The recent rise in the debt - servicing ratio is largely a result of households increasing their debt levels, rather than an unexpected sharp rise in interest rates, as occurred in the late 1980s.

The debt - servicing ratio on household borrowing has now surpassed its late 1980s peak, and is set to rise further over the first half of 2004, given current rates of household credit growth.

Debt Service Coverage Ratio = Net Profit plus Depreciation plus Amortization plus Interest Expense divided by Current Portion of Existing plus Proposed Debt.

The debt - servicing ratio reached 7.6 per cent of household disposable income in the March quarter (Graph 22).

Debt servicing ratios of both the corporate and unincorporated sectors have been lower for the past couple of years than at any time in the preceding decade (Graph 6).

The expansion of household debt has meant that the debt - servicing ratio — the ratio of interest payments to disposable income — has increased further over the past year (Graph 29).

Consequently, the household debt - servicing ratio reached 9.4 per cent of disposable income (Graph 26).

Revised data now suggest that the debt - servicing ratio reached 8.7 per cent of household disposable income in the September quarter, and it is likely to have surpassed its late - 1980s peak in the December quarter (Graph 27; see «Box B» for further discussion of the debt - servicing ratio).

The financial intermediation service charge currently increases the ratio by around 1.4 percentage points, of which around half is attributable to housing - related debt.

The governor noted in his latest speech that the debt - service ratio, or the amount we owe as percentage of our disposable income, has held steady at around 5 per cent since the early 1990s.

The primary measure of the household sector's debt - servicing burden is the ratio of aggregate interest payments to disposable income.

The revised data including the financial intermediation service charge suggest a slightly higher debt - servicing ratio over recent years than that indicated by the RBA's earlier estimates, with the revised ratio averaging 1/4 — 1/2 of a percentage point higher over recent quarters.

A false sense of security has prevailed over the last few years because the consumer debt service ratio (denoted by the red line) collapsed from 6 % to 5 % after the onset of the last recession, as bad debts were written off and interest rates collapsed.

Even if we judge that the incidence of this extreme reaction will still be relatively low, are there other forms of behaviour which are likely to have changed as a result of the higher debt - servicing ratio and higher gearing among indebted households?

However, the crucial variable here is the debt - servicing ratio — it is this which determines whether a household can keep its property when there is an interruption to its cash flow, not the absolute level of debt (or the debt to income ratio).

Compare two households — one in 1993 and the other in 2003 — that have the same percentage of their income used in debt service, and have the same gearing ratio (level of debt as a percentage of value of house), but with the 2003 household having a debt level nearly twice as high as the 1993 household.

The most important financial ratio from the household perspective is the debt - servicing ratio — the ratio of interest payments to disposable income.

Other measures of household balance sheet health such as the debt - servicing ratio and the gearing ratio show considerably less of an upward trend than the debt to income ratio.

The State, remember, is already hated in the South with a passion and that was on the back of the artificially expanded services / tax ratio of the over heated Brown Boom The overriding problem with this idea is that no - one believes in hypothecation which is a quite infantile concept when we are so badly in debt.

«In addition they should seek a waiver of the IBM lease renewal confirmation and the debt service coverage ratio,» the meeting minutes state in describing ideas offered by Kaloyeros.

It has a permanent tax base, so in theory it can time - shift its debt obligations indefinitely - without even reducing the bond - rating by simply shifting the ratio of revenue spent on debt servicing versus every other obligation.

Finally the impact of the new net spending, fresh overheads, administrative overreach, additional costs of controls, leakages, and the second - order effects of these parameters was assessed on key macroeconomic variables such as inflation, GDP - per - capita growth, debt service - to - revenue ratio, exchange rate, import cover, interest rates and credit dynamics.

As of June 30, 2015, Fuller Road Management was out of compliance with its lenders on its debt service coverage ratio, which is a measure of SUNY Poly's ability to repay its debt.

Other markers, such as the debt - service ratio, better describe the financial health of Canadian households.

The debt service ratio basically indicates the percentage of income being accounted for debt repayment and the percentage leftover for household expenses and savings.

Lenders are looking for borrowers whose debt to income ratio is below the 30 % mark so if you're spending more than a third of your income servicing debt each month, chipping away at the balances can boost your odds of getting approved for a loan.

Lenders these days are more likely to rely on the debt - service - to - income ratio, which is the ratio of the normal monthly payments on the borrower's loans to the borrower's gross monthly income.

This is a ratio that helps the lender determine how much additional debt you can handle apart from the debt you are already servicing and what is the credit risk you will be exposed to as a result of the same.

The fresh numbers come as an international financial group owned by the world's central banks says Canada's credit - to - gross - domestic - product and debt - service ratios show early warning signs of potential risk to the banking system in the coming years.

Look at the coverage ratios such as Interest coverage ratio and Debt Service Coverage Ratio which indicate the adequacy of proceeds from the operations of the firm and the claims of outsiratio and Debt Service Coverage Ratio which indicate the adequacy of proceeds from the operations of the firm and the claims of outsiRatio which indicate the adequacy of proceeds from the operations of the firm and the claims of outsiders.

* The cost to pay the mortgage, your heat and hydro, the condo fees (if applicable) and property taxes can not exceed more than 32 % of your gross taxable income — this is your Gross Debt Service ratio, or the GDS.

Here is a graph created from data released by the Federal Reserve Board which shows the Household Debt Service Ratio for mortgages as a percentage of disposable personal income.

The best indicator of mortgage debt is the Federal Reserve Board's household Debt Service Ratio for mortgages, which calculates mortgage debt as a percentage of disposable personal incdebt is the Federal Reserve Board's household Debt Service Ratio for mortgages, which calculates mortgage debt as a percentage of disposable personal incDebt Service Ratio for mortgages, which calculates mortgage debt as a percentage of disposable personal incdebt as a percentage of disposable personal income.

Gross Debt Service Ratio (GDS): The percentage of the borrower's gross monthly income that is used for monthly housing payments (principal, interest, taxes, heating costs, and half of any condominium maintenance fees).

Total Debt Service Ratio (TDS): The percentage of gross monthly income required to cover the monthly housing payments and other debts, such as car payments.

Your Gross Debt Service Ratio must be less than 39 % and your Total Debt Service Ratio can not be higher than 44 % based on the higher of the Bank of Canada qualifying rate or the customer «s mortgage rate.

The rating is based on a combination of gross revenue, EBITDA (Earnings Before Income Taxes, Depreciation and Amortization), DSCR (Debt Service Coverage Ratio), and FICO score of the business owner (which again, must be a minimum of 640).