When applying for a mortgage, it's impossible to tell exactly how much debt is acceptable because it relies on a variety of circumstances. The ideal solution is to try to reduce your debt as much as possible before applying, as this will improve your chances of being approved.

• Your debt-to-income ratio

Examining your debt-to-income ratio is a useful approach to see how much your debt will affect your eligibility. This graph compares your earnings to your debt load. It's expressed as a proportion of your monthly earnings that goes toward debt repayment.

This is what most lenders use to determine your ability to make monthly payments. As a result, the lower your debt-to-income ratio, the better your chances of getting a mortgage.

• Your credit history

Lenders look at more than just your existing loan obligations. They also look at how much debt you've already paid off and whether you completed your payments on time and in full.

In addition, they examine how you came to be in debt in the first place. Lenders are more forgiving with debt that is the consequence of events beyond your control (such as the need to borrow money to repair a car) than they are with debt that is the result of major, non-essential purchases.