What is a good debt-to-income ratio in Australia?

Lenders and APRA treat a debt-to-income (DTI) ratio of 6 or above as 'high' and apply extra scrutiny. Comfortable borrowers usually sit under about 4-5×. So a DTI under 6 keeps most lending options open; above 6, expect it to be harder to borrow more.

What counts as debt in the DTI calculation?

Your total debt includes your mortgage, car and personal loans, credit card limits (lenders often use the full limit, not the balance), HECS-HELP, and buy-now-pay-later commitments. Because the full card limit counts, closing unused cards or reducing limits can lower your DTI.

Why do lenders use DTI?

DTI is a quick gauge of how stretched you'd be if rates rose — a borrower owing 7× their income is far more exposed than one owing 3×. APRA monitors high-DTI lending across the banking system, which is why banks watch it closely alongside your income, expenses and the loan purpose.

Debt-to-Income (DTI) Calculator

Work out your debt-to-income ratio the way lenders and APRA assess it — and see whether you're in the comfortable zone or the 'high DTI' band that makes borrowing harder.

Last verified: 5 May 2026

What's my debt-to-income ratio?

DTI = total debt ÷ gross income. Lenders treat 6× or more as high and scrutinise it; comfortable borrowers sit under ~4-5×. Card limits (not balances) count, so closing unused cards helps. Source: APRA, ASIC MoneySmart.

Worked example. $120,000 income with $600,000 of debt = a 5.0× DTI — within typical lender comfort, but another big loan would push you toward the high-DTI band.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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