What is the debt ratio ?

17 December 2023

The debt ratio is the proportion of a household's income devoted solely to repaying property loans or consumer credit. It is an important criterion when applying for a mortgage.

It corresponds to fixed monthly charges as a proportion of fixed income. It is calculated as "(monthly charges,monthly income) X 100". It takes into account stable, long-term financial items.

A borrower's debt ratio is set at just over a third of their monthly income, or 33%.

Fixed monthly costs include :

- Repayments on outstanding loans

- Various pensions that may be paid (alimony, etc.)

- And all other expenses (rent, etc.).

Fixed income includes

Salaries :

- personalised grants

- Property income for owners of rented accommodation

- Various pensions and personalised assistance

- etc.

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