Expressed as a percentage, this refers to the ratio of the net operating income (NOI) to the mortgage loan amount. It is used by lenders as it shows their return on cost if they were to take ownership of the property. Debt yield is also used by lenders to ascertain an appropriate loan amount.
Debt Yield
Expressed as a percentage, this refers to the ratio of the net operating income (NOI) to the mortgage loan amount. It is used by lenders as it shows their return on cost if they were to take ownership of the property. Debt yield is also used by lenders to ascertain an appropriate loan amount.
