Qualifying Ratios

In Jamaican real estate, Qualifying Ratios are financial metrics used by lenders to determine a borrower’s ability to repay a mortgage loan. These ratios compare the borrower’s income to their debt obligations, including the mortgage payment, and are essential for assessing creditworthiness. Common ratios include the debt-to-income ratio, which measures the proportion of a borrower’s income that goes toward debt payments, and the loan-to-value ratio, which compares the loan amount to the property’s appraised value. By evaluating these ratios, lenders ensure that borrowers can handle their mortgage payments while maintaining financial stability.