Home Affordability Calculator
Calculate the maximum home price and monthly payment you can afford based on your income and loan terms.
Home Affordability Calculator
This calculator is for informational purposes only. Results are estimates and may differ from actual values.
Home Buying Guide
Why Is Payment/Income Ratio Important?
Banks generally accept payment that does not exceed 40-50% of monthly income. The ideal ratio is 30-35%. Your existing debt payments are also included in this ratio.
How Much Down Payment Is Needed?
Banks generally require 20-30% of home value as down payment. Higher down payment means lower monthly payment and total interest cost.
Tips
- Account for payment + maintenance + insurance total.
- Set aside 3-5% of home value for title deed, notary, and bank fees.
- Evaluate interest rate increase risk with variable rate loans.
- Get quotes from different banks to find the best rate.
Info
The home price you can afford depends on monthly income, down payment, loan term, and interest rate. General rule: monthly payment should not exceed 35% of income.
Shorter term means less interest but higher payments. Longer term means lower payments but much more total interest. Choose the shortest term you can afford.
Minimum 20% down payment is generally required. 30-40% is ideal, providing lower payments, less interest, and easier loan approval.
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