Loan Affordability Calculator

Debt-to-Income Ratio (DTI)

DTI measures the percentage of your monthly income that goes toward paying debts. It's a key metric that lenders use to determine your ability to repay a loan.

• 36% or less: Healthy debt load, good position for new credit
• 37-43%: Financial strain is possible, may still qualify for a mortgage
• 44-50%: Financial stress is likely, loan approval becomes challenging
• Over 50%: Critical financial stress, difficult to qualify for new credit

Tips to Improve Loan Affordability

• Increase down payment to reduce the principal loan amount and monthly payments.
• Improve credit score to qualify for lower interest rates.
• Pay off existing debts to reduce your debt-to-income ratio.
• Consider a longer loan term if you need lower monthly payments (but note that this increases total interest).
• Shop around for better rates from different lenders to minimize interest costs.