Debt-to-Income Ratio (DTI)
Your total debt divided by income. Lenders cap it at 6x or 7x.
What is DTI?
Debt-to-Income Ratio is your total debt (including the new loan, existing mortgages, credit cards and other facilities) divided by your gross annual income. On $150K income with $900K total debt, DTI is 6x.
Why it matters for you
APRA monitors DTI as a systemic risk measure. Many lenders now cap loans at 6x DTI; some extend to 7x for professionals. High DTI loans attract extra scrutiny and sometimes higher rates. Knowing your DTI before applying helps match you to the right lender.