Run your income, not a multiple you heard
Rules of thumb such as 'three times income' skip the interest rate. A 6.75% loan and a 3% loan support different prices on the same payment.
Put your salary in the affordability calculator and change only the income if you want to see the effect. Leave debts alone for that test.
Debts can erase a raise
A new car payment can consume the housing room a raise created. The back-end line is where that shows up.
If the result says debt is the tighter limit, paying down a monthly obligation can change the price more than a small raise.
| Test | Hold constant |
|---|---|
| Income | Debts, rate, down payment |
| Debts | Income and rate |
Calculators
Related guides
Sources
Common questions
Does bonus income count?
Only if you include it in the income field. Lenders may count variable pay differently from a salary. This page cannot make that underwriting choice.
Is a higher price always available at a higher salary?
Not if the extra income is matched by extra debt or by a higher tax and insurance bill.