How much can I borrow for a mortgage based on my income?

Using a percentage of your income can help determine how much house you can afford. For example, the 28/36 rule may help you decide how much to spend on a home. The rule states that your mortgage should be no more than 28 percent of your total monthly gross income and no more than 36 percent of your total debt .

How much mortgage can I afford per salary?

This ratio says that your monthly mortgage costs (which includes property taxes and homeowners insurance) should be no more than 36% of your gross monthly income , and your total monthly debt (including your anticipated monthly mortgage payment and other debts such as car or student loan payments) should be no more than ...

How much income do you need for a $400000 mortgage?

To afford a $400,000 house, you typically need an annual income between $100,000 to $125,000 , which translates to a gross monthly income of approximately $8,333 to $10,417. However, this is a general range, and your specific circ*mstances will determine the exact income required.

How much house can I afford if I make $36,000 a year?

On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.

How much house can I afford on a 70000 salary?

Assuming a 20 percent down payment on a 30-year fixed-rate loan at an interest rate of 7 percent, you can afford the payments on a $240,000 home , according to Bankrate's mortgage calculator.

How much of a mortgage can I afford making 60000 a year?

Request a Free Loan Consultation With a $60,000 annual salary, you could potentially afford a house priced between $180,000 to $250,000 , depending on your financial situation, credit score, and current market conditions. However, this range can vary significantly based on several factors we'll discuss.

Can I afford a 400k house with 50k salary?

A person who makes $50,000 a year might be able to afford a house worth anywhere from $180,000 to nearly $300,000 . That's because your annual salary isn't the only variable that determines your home buying budget. You also have to consider your credit score, current debts, mortgage rates, and many other factors.

What is the 20% down payment on a $400 000 house?

Putting down this amount generally means you won't have to worry about private mortgage insurance (PMI), which eliminates one cost of home ownership. For a $400,000 home, a 20% down payment comes to $80,000 . That means your loan is for $320,000.

Can a single person afford a 400k house?

Yes, a single person can afford a $400,000 house if they meet the income requirements . Their monthly mortgage payment, combined with their other monthly debt obligations, shouldn't exceed 36% of their gross annual income.

Can a single person live on $36,000 a year?

If you want to have a minimalist lifestyle, 36k/year is more then enough . If you want a home, family, car, insurance and some "toys", it's not going to be enough, at least in a majority of places in the U.S. But again, the term "decent" is pretty objective.

Can someone who makes 40k a year afford a house?

How much house can I afford with 40,000 a year? With a $40,000 annual salary, you should be able to afford a home that is between $100,000 and $160,000 . The final amount that a bank is willing to offer will depend on your financial history and current credit score.

How much house for $3,500 a month?

A $3,500 per month mortgage in the United States, based on our calculations, will put you in an above-average price range in many cities, or let you at least get a foot in the door in high cost of living areas . That price point is $550,000.

How much can I borrow for a mortgage calculator (2024)

Find out in seconds how much you're likely to be able to borrow for a mortgage based on your income. Our trusted calculator outlines what you need to know.

Updated 29 January 2023

Find out how much you could borrow in one simple click:

Our calculator tells you how much you can borrow based on how much you can set aside for mortgage repayments every month. Just insert:
The Max Monthly payment (amount you could comfortably repay every month) and
The Term (how long you want to have the mortgage)and
The Interest Rate (ourbest mortgage rates guide has the latest deals from the banks)

Our video explains all:
MoneyHub's Head of Research, Christopher Walsh, explains how our calculator works in the video below, as well as highlighting must-know facts and considerations:

Next Steps: Use the Calculator
Let our calculator do the work. For example, if you could set aside a maximum of $2,000 every month for mortgage repayments and want a 25 year mortgage (the standard term), enter in 2,000 in the Max Monthly Payment field.

How Much Can I Borrow Calculator

Max Monthly Payment

Ready to Re-Mortgage or Apply for a Home Loan?

Consider a Mortgage Broker - They Usually Save Time and Money

Mortgage brokers are popular and don't charge a fee. Their service goes beyond what a bank offers by comparing a number of lenders to find the best deal for your circ*mstances.

We've shortlisted top-rated mortgage brokers who go the distance for their clients in select cities around New Zealand:

Trusted Mortgage Brokers in Auckland
Trusted Mortgage Brokers in Hamilton
Trusted Mortgage Brokers in Tauranga
Trusted Mortgage Brokers in Napier and Hastings
Trusted Mortgage Brokers in Wellington
Trusted Mortgage Brokers in Christchurch

How much can I borrow? Frequently Asked Questions

How much money do you need to buy a house?

For first-home mortgages, banks require at least a 15% deposit, but it's more likely to be 20% given the restrictions on lending imposed by the Reserve Bank of New Zealand. In dollar terms, the amount you will needdepends on where you are in New Zealand and what kind of property you are looking for. For Auckland, Wellington, and Christchurch, a 2/3 bedroom home is around $400,000 to $800,000, while apartments can be a lot less. Based on this, a deposit of $60,000 to $120,000 is realistic.

How can I get money for a deposit?

General savings (such as cash in the bank, term deposits and selling down any non-cash investments) are a huge part of making up a deposit.The government allows you to withdraw all of your KiwiSaver fund to fund a deposit - our guide to the KiwiSaver First-Home withdrawal process has more details. And, if the value of your home is under the threshold level, theKiwiSaver HomeStart grantoffers money to help with your deposit. Lastly, quite often new home buyers ask their families for a loan to firm up their deposit. This is becoming increasingly difficult as house prices increase and the amount you can borrow really depends on your family circ*mstances - for a lot of people this won't be an option.

What do banks look for when I apply for a mortgage?

A lender will look at your financial circ*mstances to understand whether a potential mortgage would be affordable, sustainable and suitable. Each lender has its own criteria, but generally you will need to provide:

Proof of any regular income you have (employment contract, pay slips, bank account proof etc.)
Any extra income you receive (such as child support)
A history of your personal and living expenses, including rent payments, utilities, food and other personal expenses, as well as finance/hire purchase commitments.
A list of all of your assets (car, contents) and debts (such as credit cards, car loans etc.)

The lender will also perform a credit check and then calculate to determine if you will be able to afford the loan and keep up with the proposed payment schedule. If you have any past issues with credit or debt, read our guide tocredit reports and credit scoresbefore you make any mortgage application as you can challenge any incorrect information.

Can I get a 100% mortgage, i.e. buy a house with no money?

Yes, but only if you have an existing property that is either mortgage-free or has a low percentage of debt to equity. This is not an option for first-home buyers.

Can I borrow for an investment property?

Yes, although interest rates and repayment terms may be different to standard residential mortgages. How much you can borrow depends on the expected rental income, your deposit and security for the mortgage.

How much deposit do I need for an investment property loan?

As stated above, you can get 100% mortgages for investment properties, but this would be secured against your home. If you fail to repay your mortgage, your investment property will be sold, and if there is still money owed to the lender, your home could also be sold.

What is the maximum mortgage amount I can apply for?

You can apply for whatever amount you like, but what will be approved depends on how much you can afford to repay. If you apply for a $500,000 mortgage and earn $25,000 per year, this is unlikely to be approved. Banks are primarily concerned about affordability as this lowers the risk of defaults. Generally, if you can afford the repayments, the mortgage will be approved.

Where can I get the best mortgage deal?

Our guide to mortgagesexplains everything you need to know to find the best deal. We recommend mortgage brokers as a good place to start too - our guide outlines everything you need to know.
Looking to refinance or estimate your repayments with a specific interest rate? Check out our mortgage calculator and refinance calculator.
Want to check your credit history to make sure you look perfect to a lender? Read our guide to credit reportsbefore you make any mortgage application.

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