Mortgage amount in debt to income ratio

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Forest Kelley

• December 18, 2022 20:51

One's mortgage payment is central to calculating total debt for Debt to Income Ratio (DTIR). I own my house with my partner (we're not married), and it's not clear to me if my personal DTIR would include the total mortgage amount or 50% of it since the property and costs are shared.

I suppose this question could extrapolate to other debts that are shared such as car and credit card payments (for the back-end calculations).

What do you think? Would banks include 100% or 50% of the mortgage to my debt calculation? 

Thanks 

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• Official comment

  

  Victor D

  • December 19, 2022 18:34
  • Edited

  Thanks for posting, Forest!

   

  While we're not able to offer personalized financial advice, here are some resources that should help point you in the right direction:

   

  • Debt-to-Income Ratio Calculator - NerdWallet
  • Understanding Debt-to-Income Ratio for a Mortgage

   

  If those articles don't answer your question, I suggest contacting the bank(s) you'll be working with, as different banks may have different methods of calculating DTIR in this scenario. 

   

  Best Regards,

  Victor

   

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  CHRISTOPHER BATTISTA

  • December 28, 2022 18:54

  The debt counts100% toward each of you (assuming your partners name is on the bills too) just as the obligation lies 100% on each of you.  if either of you were to leave or become deceased, the debt remains 100%. it does not cut in half, so neither does your calculating DTI.

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