Debt-to-Income Ratio Calculator
Check if you qualify for a South African home loan — with traffic-light DTI rating and maximum bond estimate
Application very likely to be declined. Significant debt reduction needed.
Enter your debt categories for a detailed DTI breakdown.
Improvement Roadmap
Prioritised by easiest win first (smallest monthly payment).
Credit Score Guide (SA)
Commission income smoothed at 75% per NCA guidelines. Tax estimate uses 2025/26 SARS brackets. Pre-qualification probability is indicative only — banks perform their own assessments.
Three levels of detail — pick yours
Income + total debts + proposed bond → DTI ratio with traffic-light rating.
Full assessment by debt category, what-if debt reduction scenarios, and SA bank DTI thresholds.
NCA net income assessment, credit score integration, pre-qualification probability, and improvement roadmap.
What Is the Debt-to-Income Ratio?
Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes towards servicing debt. South African banks use DTI as a primary affordability metric when assessing home loan applications. A lower DTI means more of your income is free — and you are a lower risk borrower.
Under the National Credit Act (NCA), lenders are required to perform a thorough affordability assessment. DTI is a key part of this, alongside a net income analysis and credit record check.
DTI Formula
DTI with Bond (%) = (Existing Debts + Bond Repayment) ÷ Gross Income × 100
Banks in South Africa generally apply a 30% total DTI ceiling for home loans (some allow up to 43% in certain circumstances). This means your total monthly debt — including the proposed bond — should not exceed 30% of your gross income.
DTI Rating Guide
| DTI Range | Rating | What It Means |
|---|---|---|
| Below 20% | Excellent | Very low risk. Excellent borrowing position. |
| 20% – 30% | Good | Comfortable range. Most banks will lend freely. |
| 30% – 36% | Acceptable | Approaching limits. Some lenders may apply stricter criteria. |
| 36% – 43% | High | Difficult to qualify. Banks may decline or offer a smaller loan. |
| Above 43% | Very High | Most lenders will decline. Debt reduction required first. |
Worked Example
Aisha earns a gross monthly income of R45,000. She has the following existing debts: car payment R5,000, credit card minimum R2,000, personal loan R3,000. She is applying for a home loan with an estimated monthly repayment of R12,000.
Existing DTI: (R5,000 + R2,000 + R3,000) ÷ R45,000 × 100 = 22.2% — Good
DTI with bond: (R10,000 + R12,000) ÷ R45,000 × 100 = 48.9% — Very High
At this level, most banks will decline Aisha's application. Her maximum bond repayment at the 30% DTI rule is R45,000 × 30% − R10,000 = R3,500/month. She would need to either pay off existing debts, increase income, or target a lower-priced property.
Frequently Asked Questions
What DTI ratio do South African banks require for a home loan?
South African banks generally apply a 30% total debt-to-income ratio as a guideline for home loan affordability. Some lenders may stretch to 36–43% for borrowers with excellent credit, stable employment, and low risk profiles. The NCA requires lenders to assess affordability comprehensively — DTI is one input alongside net income after living expenses.
Does my bond repayment count in my DTI ratio?
Yes. When applying for a home loan, the bank includes the proposed bond repayment in your total monthly debt for the DTI calculation. If you already have a bond on another property, that existing repayment also counts. Credit card debt is typically counted at the minimum monthly payment (usually 3–5% of the balance).
How can I improve my DTI ratio before applying for a home loan?
The most effective ways to improve your DTI are:
- Pay off high-balance credit cards — even a partial payoff reduces the minimum payment counted in DTI.
- Settle smaller loans — eliminating a loan account removes the full monthly payment from your DTI.
- Avoid taking on new debt — don't finance a vehicle in the 6 months before applying for a home loan.
- Target a lower purchase price — a smaller bond means a smaller monthly repayment.
- Increase your deposit — a larger deposit reduces the loan amount and monthly repayment.
Do banks use gross or net income for DTI calculations?
South African banks assess affordability using both. The DTI ratio is typically calculated on gross income. Banks also perform a separate net income (disposable income) analysis — deducting income tax, UIF, existing debts, and estimated living expenses from your net pay to determine what is genuinely available for a bond repayment. Both tests must be passed.
Can I apply for a home loan jointly to improve my DTI?
Yes. A joint bond application combines both applicants' gross incomes, which significantly improves your DTI and maximum loan amount. Both applicants' debts are also combined, so it works best when both partners have low existing debt. Married couples, life partners, and co-buyers can all apply jointly.