First-time home buyer: how much house can you afford?
Lenders look at your income, debts, down payment and credit when deciding how much to lend.
Key points
- Housing costs (mortgage, property tax, heating) are usually capped at about 32 to 39% of gross income.
- All debt payments together are usually capped at about 40 to 44%.
- Your credit range affects both approval and the rate you are offered.
What to do next
Run the Mortgage affordability calculator to see a price range and monthly payment.
See where you stand
Estimate your score in two minutes, then see offers ranked by how well they fit you.
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