Glossary entry
Debt-to-income ratio (DTI)
Debt-to-income ratio (DTI) compares a borrower’s total debt obligations to their income, helping lenders assess affordability and risk.
Category
Lending technology
Definition
Why it matters
- Provides a consistent affordability signal across applicants
- Supports policy thresholds and risk segmentation
- Needs reliable income and liability data sources
Related terms
ServiceabilityNet surplus ratio (NSR)Looking for something else? Browse the fulllending technology glossary.
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