What is DSR, and why is it important before applying for financing?
Whether you are a fresh graduate with your first job or a seasoned employee, many of us plan to buy a house, own a new car, or apply for financing. In this process, one crucial concept you need to understand is the Debt Service Ratio (DSR).Understanding DSR is the first step â and one that should not be overlooked â as it is the first thing financial institutions such as banks assess. In reality, many financing applications are rejected not due to lack of income, but because the borrower's debt obligations exceed their financial capacity. DSR is not just a number â it is a key indicator of whether your financing will be approved.