The debt to income ratio also called the debt burden ratio measures a borrower’s total monthly debt repayments against their monthly income. Banks use it to judge whether a borrower can afford a new mortgage on top of existing commitments.
Where you’ll see it
You’ll see this ratio applied during mortgage assessment. UAE rules limit how much of a borrower’s monthly income can go to debt repayments commonly capped at around half so existing loans and card commitments directly reduce how much can be borrowed for a property.
Why it matters
The ratio can be the binding constraint on a mortgage, more than the property’s value. A borrower with significant existing debt may be limited regardless of the deposit they can raise, so managing other commitments before applying can expand borrowing capacity.
What it is not
The debt to income ratio is not the loan to value, which compares the loan to the property’s value. It is about affordability from income, not the property’s worth.
Example
A buyer with car and card repayments finds their borrowing capped because adding a mortgage would push their total repayments past the permitted share of income; clearing some debt first raises the amount the bank will lend.
Connected documents and parties
Income and liability statements, credit report; borrower, bank.
Going deeper: related reading: mortgage pre-approval.
Related Terms
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Last reviewed: June 2026