You are probably trying to figure out how much mortgage you can afford. In the article, I’m going to talk about that and explain to you 3 determining factors that show you how much mortgage you can actually afford. So without further ado let’s get right to it

  1. Debt-to-income ratio

This is the amount of your debt compared with the amount of your income. In this case by debt, I mean the only debt that is on your credit. So other debts that are not on your credit do not count here. For example, if your electricity or your vehicle bill, your rent, and so on are not on your credit they do not count in your debt-to-income ratio.

To calculate your debt to income ratio all you need to do is to divide your gross monthly income by the debts that appear in your credit report. The percentage that you get in your calculation is your debt-to-income ratio.

In order to afford more mortgages, your debt-to-income ratio must be low. If your debt-to-income ratio is high and your income is low then you are not a good candidate for a mortgage loan. In other words, if your debt-to-income ratio percentage is lower than 50 like 40 or 45 that is good. If it is 50, still you may be able to get a mortgage. However, if it is higher than 50 then unfortunately your chances are low.

  1. Credit Score

This actually shows or determines what debt-to-income ratio you need to have to be able to get a mortgage. This also determines how much mortgage you can afford. For example, let’s say your debt-to-income ratio is 40, this also means that your credit score is high and you can afford much mortgage. 

This is interesting, the lower your debt-to-income ratio is, the higher your credit score will be and vice versa.

  1. Your Savings

This is also a determining factor. The more your savings are the more you have chances to afford much mortgage. 

So if your debt-to-income ratio is low, your credit score is high, and also you have a good amount of savings, then you can afford more mortgage.

How to afford much mortgage?

Now that I’ve talked about important determining factors, let’s see what we can do to afford more mortgages.

  1. Keep your debt-to-income ratio low
  • Pay your debts off as soon as possible.
  • Reduce your monthly debts.
  • Reduce unnecessary spending.
  1. Keep your credit score high
  • This is self-explanatory. Keeping your debt-to-income ratio low will lead to a higher credit score.
  1. Your savings
  • Save as much as you can
  • Do not waste your money on trivialities.
  • Do not spend your money on expensive foods.


In this useful article, I’ve provided 3 determining factors that show how much mortgage you can actually afford. Please read those factors carefully as they can help you a lot. 

If you have found this article helpful please share it, also if you have any questions, please feel free and leave them in the comment section below.


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