Debt Savings Ratio
lastmod 2025-06-29created 2025-06-296 edits
The official name of ‘DSR’ is the total debt service ratio (Debt Savings Ratio), and it is one of the methods for setting loan limits. It sets the upper limit on how much money an individual can borrow based on all the debt they hold. The idea is to lend only up to a certain percentage (%) of annual salary, based on the sum of all loans and their principal and interest, including not only mortgage loan principal and interest but also student loans, overdraft loans, car installments, card loans, and so on.
In short
In a nutshell, the ratio of the total amount you owe to your annual salary. But with a side of principal and interest
See also
- Korean: 대출
- Korean: 모기지
- Korean: 담보 인정 비율 (LTV; Loan to Value)
- Korean: 총부채 상환 비율 (DTI; Debt to Income)
- Korean: 총부채 원리금 상환 비율 (DSR; Debt Savings Ratio)
- Korean: 주택청약