Most lenders require that you’ll spend less than 28% of your pretax income on housing and 36% on total debt payments.

If you spend 25% of your income on housing and 40% on total debt payments, they’ll consider the higher number and qualify you for a smaller amount as a result.

## How many times your salary can you borrow?

Lenders check how much you can afford. Lenders used to just multiply your income by up to five times to work out your maximum mortgage size.

## How much mortgage can I get based on salary?

A general rule of thumb is that you don’t want to spend more than 30% of your take home salary on mortgage repayments. Any more than that and you risk being “house poor” – where you own a house, but lack the money to do other important things (like build up your savings, go on holiday, etc.)

## How many times your salary will banks lend?

Most mortgage lenders use an income multiple of 4-4.5 times your salary, some offer a 5 times salary mortgage and a few will use 6 times salary, under the right circumstances.

## What mortgage can I afford on 40k?

Take a homebuyer who makes $40,000 a year. The maximum amount for monthly mortgage-related payments at 28% of gross income is $933. ($40,000 times 0.28 equals $11,200, and $11,200 divided by 12 months equals $933.33.)