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moneyDebt-to-Ratio

What Is the Debt-to-Income (DTI) Ratio?

The debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk.

43% is the highest DTI ratio a borrower can have and still get qualified for a mortgage. Ideally, lenders prefer a debt-to-income ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment. (Investopedia)

A low DTI ratio indicates sufficient income relative to debt servicing, and it makes a borrower more attractive.