Before house hunting, you need to know how much you can borrow. Our mortgage calculator helps you estimate your borrowing power and monthly payments so you can search with confidence.
Calculate Your Mortgage
See how much you could borrow and what your monthly payments might be.
How Lenders Calculate Your Maximum
Most lenders use these factors:
- Income multiple: Usually 4-4.5x annual salary
- Affordability check: Can you afford payments if rates rise?
- Credit score: Better score = better terms
- Existing debts: Reduce what you can borrow
- Deposit size: Larger deposit = more options
Understanding Loan-to-Value (LTV)
LTV is the percentage of the property price you're borrowing:
- 95% LTV: 5% deposit, higher rates
- 90% LTV: 10% deposit, better rates
- 85% LTV: 15% deposit, good rates
- 75% LTV: 25% deposit, best rates
💡 The Sweet Spot
Rates often drop significantly at 75% and 60% LTV. If you're close to a threshold, consider saving a bit more for a better deal.
Affordability vs Maximum Borrowing
Your maximum mortgage isn't necessarily what you should borrow:
- Rates will rise eventually—can you afford higher payments?
- Do you want to be "house poor"?
- Budget for maintenance, repairs, improvements
- Leave room for life changes (kids, career change)
What Affects Monthly Payments
- Loan amount: More borrowed = higher payments
- Interest rate: Small changes = big payment differences
- Mortgage term: Longer = lower payments but more total interest
- Repayment type: Interest-only vs repayment
Using the Calculator
- Enter your household income
- Add your deposit amount
- Choose an interest rate (check current averages)
- Select mortgage term
- See estimated monthly payments
About iBudget
iBudget helps couples and families take control of their finances with simple, collaborative budgeting tools. Track spending, set goals, and build wealth together.
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