How does my debt-to-income ratio affect my home loan approval?

This is a great question! As the interest rate is currently peaking, the debt-to-income (DTI) ratio is dropping. We're currently looking at maximum exposure of around 4.5x, meaning the total loan LIMIT (not balance) under your name can't exceed 4.5x of your gross annual income. I know it's a bit poor compared to 7-8x we had just a couple of years ago, but hopefully with future interest rate drop, the DTI would go up a bit, too. Hope this helps.

Your debt-to-income ratio is a key factor in determining whether you will be approved for a home loan. Your debt-to-income ratio is calculated by dividing your total monthly debt payments by your total monthly income. This ratio is used by lenders to determine how much of your income is taken up by debt payments, and how much is available for your mortgage payments. If your debt-to-income ratio is too high, lenders may be hesitant to approve your loan application. This is because the higher your debt-to-income ratio, the more of your income is already taken up by debt payments, leaving less available for your mortgage payments. It is important to keep your debt-to-income ratio as low as possible when applying for a home loan. This can be done by paying off as much of your existing debt as possible before applying for a loan. It is also important to make sure that your income is accurate and up-to-date, as this will help to ensure that your debt-to-income ratio is as low as possible. If you are looking to apply for a home loan, it is important to take the time to understand your debt-to-income ratio and how it can affect your loan approval. It is also important to check out current interest rate offers on Goodrate (https://goodrate.com.au/home-loan) to make sure you get the best deal possible.