Home Affordability Calculator

A lender works out the most they are willing to give you, which is not the same as what you can afford. This shows both numbers side by side, because the gap between them is the risk you would be carrying.

Comfortable house price

A lender would stretch to: $0
The gap between them: $0
Comfortable monthly payment: $0
At the lender's maximum: $0
Your monthly income: $0

What you can carry against what you would be lent

Both bars are a house price. The gap between them is the part a lender is happy for you to take on and you may not be.

Try a different number

Move it and watch

at {v} for household income before tax

What this assumes

And what you can change

Your circumstances stay as enteredThey rarely do for long

Prices used are today'sThey will move

Nothing unusual happensWhich is the thing worth insuring against

Not what you expected?

Why your own figure may differ

Quotes vary enormously between providers. This is an estimate to argue with, not a price.

Your own costs are not average. Where you live changes almost every figure here.

Some costs arrive later than you expect. Timing is often harder than the total.

What the monthly payment is made of

The loan payment is only part of it. Tax, insurance and service charges are due every month too, and they never go away - not even after the mortgage is paid off.

What the monthly payment is made of
Part of the payment	Comfortable	Lender's maximum

A lender allows a share of your gross monthly income for all debt including the new mortgage, commonly around 43%. The careful figure allows about 28% for housing alone. Tax and insurance are worked out from the house price, so the price is closed in on rather than solved directly.

What the rate does to your budget

Same income, same deposit, different rate. This is why shopping around for a rate is worth real effort.

Affordable price at different rates
Rate	Comfortable price	Monthly payment	Against your rate

How much house you can afford: real examples

Three cases showing the gap between approved and comfortable. Click any card to load it.

The gap in plain sight
$120,000 income, $60,000 deposit

No other debts, 6% rate.

A lender would stretch to a much larger house than the careful figure. The gap between the two is the risk you are taking on.
Load this scenario in the calculator →
What a car loan costs you
The same income, $600 of debts

A car payment and a student loan.

Your borrowing power drops sharply. Monthly debts do not just cost you their payment - they shrink the house you can buy.
Load this scenario in the calculator →
What one point does
The same buyer at 7%

One percentage point higher.

The house you can afford shrinks noticeably for the same monthly payment. This is why rate shopping is worth real effort.
Load this scenario in the calculator →

Common questions about how much house you can afford

Why do you show two different numbers?

Because they answer two different questions. The first is the most a lender would hand you. The second is what leaves room for the rest of your life. Lenders do not know about your childcare, your savings goals or your job security, and they are not the ones making the payments.

Should I borrow the maximum I am approved for?

Usually not. Being approved for a number is not advice that the number is wise. A mortgage at the very top of what you qualify for leaves nothing spare when the boiler goes, the car dies, or one income stops. The careful figure exists for exactly that reason.

What is debt-to-income?

Your monthly debt payments as a share of your gross monthly income. Lenders commonly stretch to around 43% including the new mortgage. The more careful guideline puts housing alone at around 28%, which is the second number here.

Does a bigger deposit let me buy more?

Yes, dollar for dollar, and it also lowers your monthly payment on whatever you buy. Every extra dollar of deposit is a dollar you do not borrow and never pay interest on. Below 20% you will usually pay mortgage insurance on top, which is worth knowing about before you commit.

Why does the rate change the answer so much?

Because you are borrowing a large sum for a very long time, so small rate changes move the payment a lot. Try moving the rate by one point and watch what happens to the price. It is often more than people expect, and it is why rate shopping is worth real effort.

What does this leave out?

Anything the lender does not see. Childcare, commuting, saving for retirement, irregular bills, and the plain fact that a house needs money spent on it every year. That is not a criticism of lenders - it is why the second number is the one to plan around.