What income mightthis home require?
Start with the home price, down payment, housing costs and monthly debts. The calculator works backwards to estimate the gross household income that may be needed to qualify.
Example Qualification
Home price
$750,000
Down payment
$75,000
GDS
39%
TDS
44%
The question we're answering
What income could this purchase require?
Example only. Enter your own numbers below.
Start with the home
Enter the price, down payment and estimated housing costs.
Add existing debts
Monthly debt payments can change the amount of income required.
See the estimate
The higher requirement from GDS or TDS drives the result.
Build Your Estimate
Start with the home and the numbers you know.
Change any of the inputs and the estimated income requirement will update automatically.
Your information
Tell us about the home.
Enter the purchase details, estimated housing costs and monthly debts. Your results will update automatically.
10.0% of the purchase price
Not sure? $100/month is a reasonable starting estimate.
Enter $0 if the property does not have condo fees.
Include loans, leases and other monthly debt obligations.
30-year insured mortgage eligibility
With less than 20% down, a 30-year insured amortization is available to eligible first-time home buyers and buyers of newly constructed homes.
Your results
Here's what we found.
Here’s the estimated income required.
Based on the information you entered, this is the estimated gross household income that may be needed to qualify.
Estimated gross household income required
$157,146
This estimate considers both the cost of carrying the home and the monthly debts you entered.
Estimated total mortgage
$695,925
Includes an estimated $20,925 mortgage insurance premium
Qualifying rate
6.49%
The greater of the contract rate + 2% or 5.25%
Qualifying mortgage payment
$4,657/month
Used for debt-service qualification
Mortgage insurance estimate
Why this income amount?
Mortgage qualification looks at the cost of carrying the home along with your other monthly debts. Both are considered when estimating the income that may be required.
Want to understand how lenders arrive at these numbers? Read What Are GDS and TDS Ratios?
This is a planning estimate, not a mortgage approval. Actual qualification can vary by lender, mortgage insurer, credit profile, income type, property type and other details.
Want a second look?
Want me to review your qualification numbers?
Send me the numbers you just entered and I'll take a closer look at the estimated income requirement, mortgage amount, debts and the other details that can affect how a lender views the application.
What This Means
Your income is only one part of the qualification.
Lenders look at the cost of carrying the home as well as the other monthly debts you already have. That's why two buyers looking at the same property can end up with very different income requirements.
Housing costs affect GDS
The mortgage payment is only part of the calculation. Property taxes, heating and a portion of condo fees can also be included.
Other debts affect TDS
Car loans, credit payments, lines of credit and other monthly obligations can increase the income needed to qualify.
The higher requirement wins
The calculator looks at both GDS and TDS. Whichever calculation requires the higher income becomes the planning estimate.
One thing to remember
An income calculator cannot account for every lender guideline, income type, credit situation or property detail. A full mortgage review looks at the whole application.
Continue Planning
Continue Your Home Buying Journey
These resources build on what you’ve just learned and can help you take the next step with more confidence.
Down Payment Calculator
See the minimum down payment required and how it affects your estimated mortgage.
Open CalculatorMortgage Payment Planner
Estimate your monthly, bi-weekly or accelerated bi-weekly mortgage payment.
Open PlannerClosing Costs Planner
Estimate property transfer tax, legal fees and other costs beyond the down payment.
Open PlannerA Note from Kiersten
Have a specific home in mind?
The calculator gives you a useful planning estimate, but the real qualification can change based on your income, debts, down payment, property and lender. If you have a home in mind, send me the numbers and I'll help you look at the whole picture.
