Debt-to-income ratio
The debt-to-income ratio is the share of the household's net income spent each month on repaying its loans.
Banks look at it to check that, after the monthly payment, enough is left to live comfortably. There is no single legal ceiling in Luxembourg: each bank assesses income, its stability and what remains to live on.
The calculation includes all current loans (car, consumer credit): paying them off before applying for a mortgage can increase borrowing capacity.