What is debt-to-income ratio?
DTI is total debt (including the new home loan) divided by gross annual household income — APRA's benchmark for elevated risk is DTI ≥ 6.
Debt-to-income ratio (DTI) is the simplest single-number measure of household debt load: add up every debt (the new home loan, any existing loans, credit card limits, BNPL facilities) and divide by gross annual household income before tax.
APRA monitors banks' share of new lending above a DTI of 6, and most lenders apply tighter internal caps. A DTI of 7+ usually triggers manual underwriting or outright decline; a DTI under 4 is uncomplicated.
Credit card limits matter even when the balance is zero — the full limit counts as debt for DTI. Closing or reducing limits before applying is one of the cleanest ways to lift DTI capacity without changing income.
DTI · debt to income · DTI ratio
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General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.