Question

Banks use debit-to-income ratios in order to:

Answer 1

The answer is D. Analyse the value of a borrowers home and cars to be used as collateral for a loan.

Answer 2

C. It is a ratio of earnings versus expenses.


The lower your DTI, the better. In most cases, you’ll need a DTI of 50% or less, but the specific requirement depends on the type of mortgage you’re applying for.