DTI - Debt to income calculation

DTI - Debt to income calculation


DTI = Debt / Income

Income
The monthly before tax total of income. All income(before tax) is added together and then divided by 12 to get a monthly value. i.e.
  • Annual employment income if the borrower is an individual + (plus)
  • All additional income:

    • The additional income commitments will be retrieve from the source of incomes as defined by the finance company. Any source of income that has the “include in DTI” set to true will be included.

     

    Debt

    Existing debt commitments plus expenses plus the repayment amount of the application involved. Only debts and expenses that the finance company would like included will be include in the calculation.
    1. The debt types for the finance company that have a “Include in DTI” set to true. The values will be applied as per the settings of the debt type as detailed below and the first non zero result will be used i.e.
    2. If “use percentage of repayment” has a value – use X% of repayment
    3. If “use percentage of limit” has a value – use X% of limit
    4. If “use percentage of balance” has a value – use X% of outstanding balance
    1. The expense types for the finance company that have a “Include in DTI” set to true. The values will be applied as per the settings of the expense type i.e. If “use percentage of amount” on the expense has a value used will be X% of the expense supplied by the borrower
    2. The repayment amount of the application involved will be added to the debt value.

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