How much house can you afford? Use this affordability calculator to figure out what is suitable for your financial situation.
Using the affordability calculator
Use the affordability calculator to figure out how much you can afford based on your income, living costs and current debt obligations.
How much do you earn every year? If you’re buying with someone else, how much do they earn? Use your income to determine the amount you can afford.
Monthly living costs
Once you’ve figured out how much income you have, factor in your monthly living expenses. These are costs directly related to owning a home. How much property tax, heating, electricity, condos fees, insurance will you pay? These figures take away from your income and have an effect on how much of a home you can afford.
Monthly debt payments
Your monthly debt payments (loans, car payments, credit card debt) affect how much you can afford. It takes away from the amount of income you have available for your mortgage payment. The less debt payments you have, the better it is. You can use more of your income towards housing costs and mortgage payments. If you have a lot of debt right now, consider reducing it so that you are able to afford the home you want and manage your finances better.