Inside the comfortable range
Below roughly six times gross income, debt-to-income is unlikely to be the thing holding your application back. Serviceability, deposit and credit history do the work from here.
Tool 09 · Borrowing power
Debt to income
Debt-to-income compares everything you owe against everything you earn before tax. It is a blunt measure, and it is one of the first things a credit assessor looks at.
Helps you work out: your debt-to-income ratio — the number lenders use as a first-pass credit check.
My income & debts
Your DTI Ratio
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Assessment
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Debt Headroom to DTI 6
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General advice warning
The results provided by this calculator are estimates only and should not be taken as personal financial advice. The calculations are based on the assumptions you have entered and do not take into account your personal objectives, financial situation or needs. Before making any financial decisions, we recommend you consult with a qualified financial adviser. Financial Elements PTY LTD (Corporate Credit Representative Number 499510) is an Authorised Corporate Credit Representative of BLSSA Pty Ltd (Australian Credit Licence 391237).
Reading your result
How lenders read your ratio
There is no legislated cap, but banks report high debt-to-income lending to the regulator and manage it carefully. That reporting threshold shapes how your application gets treated.
Expect more scrutiny
Around six times is where lenders start to tighten. Applications may need additional justification, escalation to a senior credit assessor, or a stronger position elsewhere — a larger deposit, secure income, a genuine savings history.
A narrow field
Some lenders decline outright at this level; others will consider it with compelling reasons. Reducing debt is usually more productive than shopping the application around, and credit card and personal loan limits are the fastest lever.
Method & assumptions
How this calculator works
Total borrowings rather than repayments: existing home loans, the new loan you are applying for, personal and car loans, and credit card and line-of-credit limits — the limit, not the balance. Treatment of study debt varies between lenders.
Gross annual income before tax, generally including the shaded portion of overtime, bonus and rental income that a lender is prepared to recognise. One-off payments are usually excluded.
No. Australian lenders must lend responsibly and report higher debt-to-income lending to the regulator, which in practice makes six times a soft internal threshold rather than a hard rule.
Serviceability asks whether you can afford the repayments at a stress-tested rate. Debt-to-income asks how large the debt is relative to income, regardless of rate. It is entirely possible to pass one and fail the other.
Reduce or close credit card and line-of-credit limits, clear small personal loans, and avoid taking on new commitments in the months before you apply. Raising income works too, but lenders want to see it established.
Keep going
Related calculators
Ready when you are
One number, several ways to move it.
We will work out whether debt-to-income is actually the constraint on your borrowing — and what to change first if it is.