Lower Your Debt-To-Income Ratio

Lower is better when we’re talking debt to income ratios. A lower DTI ratio indicates a lower risk borrower and makes it easier to qualify for lower rates.  

The DTI ratio is a key metric used by lenders to assess the ability to manage monthly payments and repay debts. You can calculate your DTI ratio by dividing your monthly debt payments by your gross monthly income.  

Impact of Student Loans  

Outstanding student debt commonly contributes to a higher DTI. For the millions of employees in Canada burdened by student loans, repayment is a crucial step towards decreasing debt and achieving financial stability.  

A higher DTI ratio can result in higher interest costs and reduce disposable income for savings and investments, emphasizing the financial importance of repaying student loans promptly.  

Participating in your employer’s debt repayment benefits is an excellent way to get help managing and decreasing your debt.  

Employee Results 

Employees on Marmot’s student loan repayment platform save years of student loan payments and thousands of dollars on the cost of their student loans.  

They lower their DTI and enhance their ability to contribute to a First Home Buyers Savings Account, qualify for more favorable mortgage terms, or increase retirement savings. 

Long-Term Benefits  

Accelerating student loan repayment makes good financial sense, especially if you're considering buying a home or contributing to a First Home Buyers Savings Account. By reducing your debt-to-income ratio, you can qualify for better mortgage interest rates, lower monthly payments, and improve your overall financial health and stability.  

Take advantage of your employer's student loan repayment benefit to achieve your financial goals sooner. Contact HR or ask your Benefits Administrator today. 

Learn more at www.marmotbenefits.com