REAL ESTATE UNDERWRITING
⌕ Search dictionary
Debt yield
Also called: loan debt yield
A lender metric commonly calculated as NOI divided by loan amount.
What it means in practice.
Debt yield measures property income relative to lender exposure without relying on interest rate or amortization assumptions.
Why it matters.
It is often used alongside LTV and DSCR in commercial underwriting.
Additional notes.
Debt yield measures property income relative to lender exposure without relying on interest rate or amortization assumptions.
KEEP LEARNING
Build the vocabulary before the transaction clock starts.
Explore the federal framework, exchange structures, replacement-property intelligence and professional roles connected to this term.