Before you buy a home, it’s essential to figure out what you can actually afford. This simple calculator tells you the price range you can afford, along with the mortgage size your budget can handle. Here’s a rule of thumb: your household expenses should not add up to more than 40% of your household income (before taxes).
What are household expenses?
Household expenses typically include:
- Property taxes
- Heating and utility costs
- Mortgage payments
- 50% of condominium fees
- Payments on outstanding loans, leases and credit card balances
What does household income include?
Your household income includes your salary and any other income you declare.