What is a good debt-to-income ratio for borrowing?

A good debt-to-income (DTI) ratio for borrowing is generally 36% or lower, meaning your total monthly debt payments should not exceed 36% of your gross monthly income. Most lenders consider this a healthy range that indicates you can comfortably manage additional debt. For mortgage lending specifically, many lenders prefer a DTI of 43% or less, as this is often the maximum allowed for qualified mortgages. Some lenders will go up to 50% in certain situations, but the lower your DTI, the better your chances of approval and favorable interest rates. A DTI below 20% is considered excellent and signals strong financial health to lenders.