Debt to income- putting things into perspective

don78

This morning I’ve been browsing online and stumbled across nationwides debt to income calculation that they use when assessing mortgage applications etc. Apparently it’s calculated by dividing your total monthly debt payments by your gross monthly income and multiplying the result by 100 to get a percentage.

Ours comes out at 35% which is apparently ‘healthy’. They don’t like the % to exceed 45%.



I know that this doesn’t negate from the fact that our debt is high, but it does put things into perspective and makes me remember that it’s all relative

NeverendingDMP

I had a quick go with income and monthly debt costs pre kids then post first child and then again post the twins.
26 percent pre kids
24 percent after first born
22 percent now in our DMP. Would be 33 if paying contract minimums.

All seem very healthy but it's not ha ha. Puts into perspective what I have thought all along. Childcare costs have ruined us aaaaargh. All a bit of fun. Figures slightly guessed though and I know childcare comes up in affordability checks. Ever changing though and we are over the worst of it.
:j