Debt-to-Income (DTI) Ratio
noundebt-to-in·come ra·ti·opronounced DET-too-IN-kum RAY-shee-oh
Last reviewed 16 April 2026
What does the noun Debt-to-Income (DTI) Ratio mean?
A measure of a borrower's total debt relative to their gross annual income. A DTI of 6 means total debt is 6 times annual income. From February 2026, APRA requires lenders to limit loans with a DTI of 6 or higher to no more than 20% of new mortgage lending, with exemptions for new dwelling purchases and owner-occupier bridging loans.
How the noun Debt-to-Income (DTI) Ratio is used
With a combined income of $140,000 and total debt of $840,000, our DTI ratio sat at 6, right on the APRA limit that triggers tighter lending restrictions.
Synonyms
DTI
Related words
Cite this entry
MLA citation: "Debt-to-Income (DTI) Ratio." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/debt-to-income-dti-ratio. Accessed 29 May 2026.
Chicago citation: How to Property. "Debt-to-Income (DTI) Ratio." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/debt-to-income-dti-ratio.
APA citation: How to Property. (2026, April 16). Debt-to-Income (DTI) Ratio. https://howtoproperty.com.au/definitions/debt-to-income-dti-ratio