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    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)

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