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, $500/month of other debts and $60K down: the 28% cap ($2,100/month principal and interest, 30 years) supports a ~$315.6K loan, so the US rule allows a ~$375.6K home (before property tax and insurance).

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

Annual Gross Income ($)

Monthly Debt Payments ($)

Down Payment ($)

Interest Rate (%)

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%

Sources & Methodology

Affordability is assessed differently by country: the US uses debt-to-income ratios (28/36 rule), the UK uses income multiples (around 4–4.5×), and Canada and Australia apply mandatory stress tests or serviceability buffers above the contract rate.

Standards and figures reviewed 2026.

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Refinance calculator →

When a new rate beats the old one

PMI calculator →

US PMI, Canada CMHC, Australia LMI

Rent vs buy →

The other side of the mortgage decision

Property tax →

US mill rates, UK Council Tax, AU land tax

Debt-to-income →

US 43%, UK affordability, Canada GDS/TDS

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APA

WorldCalculators.org. (2026, September 25). How Much House Can I Afford? Affordability Calculator. https://worldcalculators.org/calculators/house-affordability/

MLA

“How Much House Can I Afford? Affordability Calculator.” WorldCalculators.org, 25 Sept. 2026, worldcalculators.org/calculators/house-affordability/.

BibTeX

@misc{worldcalculators2026calculatorshouseaffordab,
  title        = {How Much House Can I Afford? Affordability Calculator},
  author       = {{WorldCalculators.org}},
  year         = {2026},
  howpublished = {\url{https://worldcalculators.org/calculators/house-affordability/}}
}

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