## What is the ideal debt-to-income ratio to qualify for a mortgage?

The ideal debt-to-income ratio for aspiring homeowners is at or below 36%. Of course the lower your debt-to-income ratio, the better. Borrowers with low debt-to-income ratios have a good chance of qualifying for low mortgage rates.

## What is debt-to-income ratio and how does it affect your mortgage?

They review your debts and income to calculate a ratio of the two that is one factor in determining whether you qualify for a mortgage. Expressed as a percentage, your debt-to-income, or DTI, ratio is your all your monthly debt payments divided by your gross monthly income.

## What is the highest debt-to-Income (DTI) ratio for a mortgage?

As a general guideline, 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. The maximum DTI ratio varies from lender to lender.

## What is the meaning of debt to income ratio?

BREAKING DOWN ‘Debt-To-Income Ratio – DTI’. A low debt-to-income (DTI) ratio demonstrates a good balance between debt and income. Conversely, a high DTI can signal that an individual has too much debt for the amount of income he or she has.