Break-Even Ratio (BER)

After a week, there is another term in our Real Estate Dictionary for all investors hungry for definitions! This one will definitely help you with your property analysis, especially if you are looking for a financing.

Break-even ratio is another benchmark used by mortgage lenders. It estimates how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less.

Note: Zilculator published a new LEARN section with an updated article including Break-Even ratio excel template.