How much house can I afford on my income?

US rule: Housing costs ≤28% of gross monthly income (front-end DTI); all debts ≤36% (back-end DTI). On $90K annual income ($7,500/month): max housing payment = $2,100/month. UK lenders: typically 4–4.5× annual income. Canada: GDS ratio ≤32%, TDS ratio ≤44%. Australia: serviceability assessed at rate + 3% buffer.

What is the Canada mortgage stress test?

The Canadian stress test requires borrowers to qualify at the higher of: their contract rate + 2%, or 5.25% (the minimum qualifying rate). This means if you negotiate a 5.5% mortgage, you must qualify at 7.5%. The stress test applies to all mortgages since 2018, including uninsured mortgages.

How do UK income multiples for mortgages work?

UK mortgage lenders typically offer 4–4.5× your annual income. So on £60,000 income, you could borrow £240,000–£270,000. Some lenders offer 5× or 5.5× for high earners, professionals, or low-risk borrowers. In contrast, the US uses debt-to-income ratios rather than income multiples. Australia uses serviceability buffers rather than fixed multiples.

🇺🇸 28/36 Rule 🇬🇧 4–4.5× Income 🇨🇦 Stress Test 🇦🇺 Serviceability

House Affordability Calculator

How much home can you afford? Every country uses different rules — the US uses debt-to-income ratios, the UK uses income multiples, Canada has a mandatory stress test, and Australia applies a serviceability buffer.

Quick Answer

US: Monthly housing ≤28% gross income. UK: Borrow up to 4.5× annual salary. Canada: Must qualify at your rate + 2% (stress test). Australia: Must service loan at contract rate + 3%. On $90K income with 7% rates and $60K down: US allows ~$380K home.

💡 US: 28/36 rule — housing costs ≤28% of gross income; total debts ≤36%.

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Mortgage Affordability Rules by Country

Country	Affordability Rule	Stress Test
🇺🇸 United States	Front-end DTI ≤28%, Back-end DTI ≤36% (conventional)	Not mandatory, but used in underwriting
🇬🇧 United Kingdom	4–4.5× annual gross income (FCA Mortgage Market Review)	Stressed at 3–4% above revert rate
🇨🇦 Canada	GDS ≤32%, TDS ≤44% (CMHC guidelines)	Contract rate + 2% or 5.25%, whichever higher
🇦🇺 Australia	No national cap — lender-specific, APRA oversight	Contract rate + 3% serviceability buffer (APRA)
🇩🇪 Germany	Max 35–40% of net income for housing costs	Stress tested at rate + 2–3%