Broadly defined, serviceability is the ability of a borrower to meet loan repayments, based upon the loan amount, the borrower’s income, expenses and other commitments.
This generates an overall figure, known as the debt service ratio – a borrower’s monthly debt expenses as a proportion of monthly income.
Most lenders set a maximum debt service ratio of between 30 and 35 percent.
This information in this article is general only and does not take into account your individual circumstances. It should not be relied upon to make any financial decisions. uno can’t make a recommendation until we complete an assessment of your requirements and objectives and your financial position. Interest rates, and other product information included in this article, are subject to change at any time at the complete discretion of each lender.