DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

It shows what percentage of your income is used to repay debt — the lower the DTI, the better your chances of loan approval.

DTI Limits by Japanese Lenders

Loan Type / LenderMax DTI Allowed

Most private banks 25% – 35%

Flat 35 loansUp to 35%

Lenders for non-PR foreigners

Often more flexible (up to 40–45% in some cases)

  • This includes all existing loans (e.g., car loan, personal loan) plus the new housing loan.

  • If your DTI is too high, the bank may:

    • Reduce the amount you can borrow

    • Ask for a guarantor

    • Reject the application

Example

If your monthly income is ¥400,000, and the bank allows a 35% DTI:

400,000 x 35% = 140,000JPY max in monthly loan repayments

That means your housing loan + any other loans should not exceed ¥140,000/month.

How to Improve Your DTI

  • Pay off existing loans before applying

  • Choose a longer loan term (to reduce monthly payments)

  • Include a co-borrower or spouse’s income (if allowed)

  • Provide proof of bonuses or stable side income