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DTI Ratio Explained
Learn why Debt-to-Income (DTI) ratio matters for your borrowing power and home loan approval.
Updated Feb 2026
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:
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.
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