gross debt service ratio | Real Estate Dictionary

The percentage of gross income which is the maximum amount a mortgagor is allowed to pay annually in principal, interest, and property taxes. For example, a mortgagor may pay $270 out of $1000 gross income as P.I.T. payments. This ratio is usually expressed as a percentage i.e., P.I.T. payments can be 27% of gross income. Compare to Loan-to-Value Ratio. See also Ratio and Total Debt Service Ratio.