DTI Explained: Why Debt-to-Income Ratio Matters for Borrowing Power

DTI (Debt-to-Income) is:

DTI = total debt ÷ gross annual income

A high DTI can limit lender options even if repayments look affordable.

Check your estimate:

• Borrowing Power Calculator

Practical ways to reduce DTI

• Increase deposit (borrow less)
• Reduce other debts
• Reduce credit card limits
• Improve income stability over time

FAQ

Is DTI the same as serviceability?

No. Serviceability is repayment capacity under assessment rules. DTI is a ratio used as a risk signal.