Home Affordability

Home Affordability Calculator

Monthly Payment Information

Purchase Price
€ 150,000
Principal & Interest
€ 636
Property Taxes
€ 125
Insurance
€ 62
Monthly Payment
€ 824
Your loan-to-value ratio is the most limiting factor on the price of a home you can purchase. Increasing your down payment will allow you to increase the price of the home you can afford.
Created with Highcharts 6.1.0 Dollars Home Affordability by Lending Ratios Loan to Value Ratio Housing Ratio Debt Ratio 0 50k 100k 150k 200k 250k 300k

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Your ability to obtain a loan for a new home purchase is based on a number of factors. Lenders typically make lending decisions based on three key ratios: (1) Loan-to-value ratio (LTV), which represents the ratio of the loan amount to the value of the home. Lenders ideally want to see an 80% LTV, meaning a 20% down payment is preferred; (2) Housing Ratio, which represents the percentage of your total income that goes towards housing expenses; and (3) Debt-to-Income Ratio, which represents your total debt payments, plus housing expenses as a percentage of your total income. Lenders will typically look at any of these ratios as constraints, meaning once any of these ratio limits is reached, the amount of the loan will be capped.