Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. While some people are trying to save tax, I was some years trying to pay more so that my gross income can raise in order to be able to get a new loan (capitalism, right !). On the side note, if your monthly payments to gross income ratio is higher than 43% including the projected payments of the new property, it is unlikely that you would qualify for a conventional mortgage. Annual debt also includes HoA payments you make for every condo plus the prospect. Getting a 30 year term loan would decrease your payment, and increase your ability to get the loan.