Mortgage affordability calculator
Estimate the home price that may fit your income, existing debts, down payment and expected housing costs.
A home price that fits your budget
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Enter your income and down payment to see your price range.
- Home price
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- Mortgage amount
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- Monthly payment
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This calculator provides a general affordability estimate. Actual affordability and mortgage approval depend on lender requirements, income verification, debts, credit, property details and other factors. It uses the federal stress test and the limits most lenders apply: 39% of your income for housing costs and 44% for all your debts.
Mortgage affordability questions
What does mortgage affordability mean?
It’s the home price your income, debts and down payment can support. Lenders look at how much of your income would go to housing costs, and how much to all your debts, and set a limit on each. This calculator shows two figures: a price that fits your budget, and the most lenders may approve.
Why are there two figures?
The lender maximum uses the full limits most lenders allow. The budget figure keeps your housing costs closer to 32% of your income, which leaves more room for savings and everyday costs. Either can be the right choice. It depends on your plans, and we can work it out together.
What can affect how much home I can afford?
Your income, debts and down payment matter most. Your interest rate, amortization, property taxes, heating and condo fees count too. So do things a calculator can’t see, like your credit history, how your income is earned and the property itself.
What is the stress test?
Lenders have to check that you could still make your payments at a higher rate. Under the federal stress test, they qualify you at your rate plus 2% or at 5.25%, whichever is higher. It lowers the most you can borrow, but your payments are still based on your actual rate.
Why does my credit card balance count if I pay it off every month?
Lenders see the balance on your credit report when they check it, and they usually count 3% of it as a monthly payment. If you pay your cards in full, that balance may be lower by the time they look. We can talk about timing before you apply.
Is this the same as a pre-approval?
No. This is an estimate from the numbers you enter. A pre-approval is a lender’s review of your income, credit and documents, and it usually holds a rate for a set time. When you’re ready, I can help you get one.
Let’s look at your numbers together
Tell me what you entered, and I’ll check it against what lenders will look for in your application.
A first conversation costs nothing and commits you to nothing.