GenzeeMortgage Affordability Calculator
Find out how much home you can realistically afford based on your income, existing debts, down payment and a target debt-to-income ratio.
Estimated affordable home price
PKR 9,433,346
How affordability is actually calculated
Lenders typically cap total monthly debt payments — including a new mortgage — at a percentage of gross or take-home income, commonly somewhere between 36% and 43%. This calculator works backward from that cap: it subtracts your existing debt payments from the maximum allowed total, then solves for the loan amount that produces exactly that remaining payment at your chosen rate and term.
Why existing debt matters so much
Two people with identical income can qualify for very different mortgage amounts if one has significant existing debt payments (car loans, other loans) eating into their allowed debt-to-income ratio. Paying down existing debt before a mortgage application can meaningfully increase how much home you can qualify for, sometimes more effectively than saving a larger down payment.
Affordable vs. comfortable
This calculates the maximum a lender's debt-to-income formula would typically allow — not necessarily what's comfortable to actually pay every month once other living costs are factored in. Many financial planners suggest targeting a mortgage payment meaningfully below the calculated maximum, leaving room for savings, emergencies, and lifestyle spending beyond bare affordability.
Frequently asked questions
Does this include property tax and insurance?
No — this estimates the loan-based affordability only. Property tax, homeowner's insurance, and maintenance costs would reduce the realistic affordable amount further and should be budgeted for separately.
What debt-to-income ratio should I use?
Lender requirements vary, but 36-43% total debt-to-income is a common range. Using a more conservative ratio than the maximum a lender might allow generally leaves more breathing room in your monthly budget.
Should I use gross or take-home income?
Lenders commonly qualify borrowers based on gross income, but budgeting comfortably is better anchored to take-home income after tax. Using take-home income here gives a more conservative, realistic affordability estimate.