The Mortgage Ledger

US · Canada · UK

How much house can I afford?

Work backwards from your income. We apply the debt-to-income rule lenders use — after your existing debts — to estimate the most you can comfortably borrow, with live national rates and your region’s property tax and insurance.

Your finances

Car loans, student loans, credit-card minimums, etc.

You could afford

California, United States · up to 36% of income on housing

$539,759

estimated maximum home price

Monthly housing budget
$3,200.00
Down payment (20%)
$107,952
Loan amount
$431,807
Principal & interest
$2,729.32
Property tax + insurance
$470.68
Open this in the full calculator →

An estimate to help you plan — not financial advice or a loan offer. A guideline based on the 36% debt-to-income rule — lenders also weigh credit, employment, and reserves. Tax and insurance are estimated regional averages.

Should you buy — or is renting smarter?

Mortgage rate trend

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How much home you can afford depends on where you're buying. The US and Canada cap your monthly debts as a share of income (debt-to-income), while the UK starts from an income multiple and an affordability stress test. This calculator applies the right model for your country and works back to a realistic price.

How this calculator works

In the US it's the 28/36 rule — about 28% of gross income toward housing and 36% toward all debt. In Canada it's GDS/TDS (roughly 39%/44%) plus the federal stress test, which qualifies you at a higher rate than you'll pay.

The UK doesn't use debt-to-income at all: lenders start from an income multiple (typically around 4.5×) and then run the FCA affordability and stress tests against your real outgoings.

In every case, a larger down payment, a lower rate, and fewer existing debts raise what you can afford — you can test each above.

A worked example

The same question, two different models — a US buyer (debt-to-income) and a UK buyer (income multiple):

US: $100k income, 20% down (Texas costs, 36% DTI)
$363,972 home
UK: £50k income (≈4.5× multiple)
£225,000 borrowing

The US caps debts as a share of income; the UK starts from an income multiple and a stress test. The tool applies the right model for your country.

Who it's for

  • You want a realistic budget before house-hunting.
  • You're comparing what you can afford in different countries.
  • You want to understand your country's specific lending rules.

Frequently asked questions

How much house can I afford?

It depends on your income, debts, down payment, and country. The US/Canada cap debts as a share of income; the UK uses an income multiple. Enter your figures for an estimate under the right model.

Why does the US differ from the UK?

The US and Canada use debt-to-income ratios (like 28/36 or GDS/TDS), while UK lenders start from an income multiple of roughly 4.5× and apply an affordability stress test — so the same income can support different amounts.

Does my down payment change what I can afford?

Yes — a larger down payment shrinks the loan and can remove mortgage insurance (US PMI or Canadian CMHC), freeing up room within the affordability limit.

Is the result a guarantee I'll be approved?

No — it's an educational estimate. Actual approval depends on your credit, employment, the property, and each lender's own rules.

A planning estimate, not a lending decision. Actual approval depends on credit, employment, reserves, and lender policy.

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