Debt-to-Income Ratio

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Debt-to-Income Ratio

The amount of an individual or company's gross income that it spends on debt service as a percentage of its total gross income. The higher the DTI is, the less likely it is that the individual or company will be able to repay debt. As a result, financial institutions use the DTI in informing decisions on whether or not to make loans. Often, the "debt" in the term refers to all liability payments (such as employee wages, taxes, and utility bills) and not simply to debt.
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The bulletin, which was signed by Minister of Economy and Finance Aun Pornmoniroth, revealed that for last year all four key debt indicators - such as the debt-to-GDP and debt-to-income ratios - are well below their indicative thresholds.
Government repays $1.39B in debt service payments
Korean banks' mortgage underwriting is highly regulated in respect of loan-to-value and debt-to-income ratios. The regulatory limits applied to these measures can be more stringent depending on the location of the mortgage security or where borrowers have more than one mortgage.
Tightening of rules may have a positive impact
There's also been a big increase in FHA loans with high debt-to-income ratios (DTIs) within the past several years.
Lower credit scores, higher debt ratios open opportunities
Debt-to-asset and debt-to-income ratios were calculated and characterized as moderate-risk debt-to-asset ratio (0.5 to 0.9), high-risk debt-to-asset ratio (≥0.9), and high-risk debt-to-income ratio (>0.4)
Most Surgical Residents Want Financial Education; Large majority of surgical residents surveyed had a moderate- or high-risk debt-to-asset ratio
Measures include an increased capital tax gain on house sales and stronger requirements for loan-to-value ratios and debt-to-income ratios in certain areas (including Seoul)," it said in its report.
Household debt to GDP soars to record high
In a statement, the central bank said, 'Real estate-induced systemic risks remain subdued in Austria, but close supervisory monitoring is warranted in light of the fact that a rising share of new housing loans to households shows relatively high loan-to-value, debt service-to-income and debt-to-income ratios.'
Austrian central bank issues caution on property loans market
Debt-to-asset and debt-to-income ratios, as well as total debt, have been on the rise.
Rising Debt Levels among Near-Retirees
(3) Our results do not support this explanation of the debt-dependent fiscal multiplier: They show that individuals with higher pre-recession debt-to-income ratios actually reduce their debt by more than those with lower debt-to-income ratios.
Does fiscal stimulus work when recessions are caused by too much private debt?
Indeed, almost half of FHA borrowers have debt-to-income ratios above the QM limit of 43%.
Housing conundrum: a shortage of demand or supply?
The FPC set out new policies on home loans a year ago to insure against the risk of a steep rise in indebted households and has been given powers to limit residential mortgage lending at high loan-tovalue or high debt-to-income ratios.
ECONOMY TODAY; BUY-TO-LET FEARS
They ban certain loan features such as negative amortization and interest-only payments; set a 43 percent ceiling for debt-to-income ratios; and impose a 3 percent limit on total loan fees, among other requirements.
'Near-miss' buyers trying 'non-QM' market

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