Formula
The payment budget is income times the share you type. The price is the highest amount whose loan payment fits that budget:
Payment budget = income × share
The mortgage-affordability page uses a fixed 28/36 guide and other debts. This page uses only the share you choose, and it prices principal and interest.
Assumptions
- The down payment is a percent of the price.
- Tax and insurance are not in the payment budget.
Worked example
$8,000 of income, with 30% for a 6.5% loan and 20% down, supports a home price of $474,633.44.
Input definitions
- Share for the mortgage payment
- The percent of gross income you want the principal and interest to use.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Why might this differ from the mortgage affordability result?
That page caps housing with a 28/36 guide and subtracts other debts. This page uses your percent only.
Are taxes included in the price?
No. The payment budget is principal and interest.