Increasingly lender jargo is creeping into the mainstream media and DTI is fast becoming an often quoted measurement. DTI or Debt to Income Ratio is simply a measure of total household gross income relative to all household debt (including not just the loan you are applying for but credit card limits, car loans, personal loans etc). Generally speaking most banks and lenders will want to see a DTI of less than six (6) times but some are willing to stretch further to seven or even eight times gross household income. With that said its generally not often wise to max yourself out the upper thresholds of this level unless there are specific strategies in place. For example property investors often have higher DTI’s because of the investment property loans in place but this can theoretically be reduced quite quickly with the sale of one or two investment properties. Alternatively younger people who are in their earlier stages of their careers may be willing to stomach a higher DTI ratio on the basis of their projected income earnining potential. It pays to understand how different lenders apply this important metric than to try and DIY it with your local bank or lender alone.