- Monthly Debt Payments: Includes all debt payments (utility bill is not included)
- Gross Monthly Income: Income before taxes.
What is a Debt to Income (DTI) Ratio?
Lenders (Banks and financial institutions) utilize the DTI ratio as a key criteria to assess your loan eligibility. Generally, lenders prefer to see a DTI ratio of 35% or lower.
| DTI Ratio | Interpretation |
|---|---|
| Below 35% | Good |
| 35% – 49% | Okay |
| Above 49% | High |