What Is Mortgage Affordability?
How much mortgage you can safely repay based on income and existing debts.
Definition
Mortgage affordability is an estimate of the largest mortgage payment you can comfortably manage. It depends on net income, existing debt payments, interest rate, loan term and lender criteria. Most guidelines suggest keeping mortgage payments below 28–35% of net income, but lenders apply their own criteria.
Related calculators
Use these tools to work with mortgage affordability in your planning.
Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio and see whether it is healthy, moderate, high or risky.
Open Debt-to-Income Ratio CalculatorMortgage Affordability Calculator
Estimate a safe monthly mortgage payment, affordable loan amount and property budget based on income, debts and deposit.
Open Mortgage Affordability CalculatorOther glossary terms
Gross Salary
Your salary before taxes and deductions are removed.
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Your salary after all taxes and deductions are removed — the amount you actually receive.
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A tax paid on earned income, deducted from your salary or paid on profit.
Read definitionSocial Security
Compulsory contributions paid by employees and employers to fund public welfare programmes.
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