Debt to Income Ratio (DTI)

Total debt divided by gross annual income, giving a single figure for how leveraged a borrower is. Unlike serviceability, which asks whether you can afford repayments today, DTI asks how exposed you would be if rates rose. APRA requires lenders to report higher DTI lending and most lenders set their own internal ceiling, above which an application needs a strong reason to proceed. Thresholds are reviewed from time to time, so confirm the current position with your broker rather than relying on a figure you read.