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Kalkine Media ASX Share Market News & Research

What is the back end ratio?

September 11, 2024 12:30 AM BST | By Team Kalkine Media
Google News: https://kalkinemedia.com/resources/assets/public/images/google-news.webp

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Discover the importance of the back-end ratio, also known as the debt-to-income ratio, in evaluating a borrower’s financial health. This video explains how the back-end ratio measures the proportion of monthly income used for debt payments and its impact on loan approval. Learn how it compares to the front-end ratio, the formula for calculation, and tips for improving your ratio. Understand how lenders use this ratio to assess risk and make informed lending decisions.

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