Mortgage Affordability Calculator | Affordable Property Price - Calculatorism
Enter household monthly income, down payment, and interest rate to estimate the affordable property price and maximum mortgage loan.
Input Data
Results
At a glance:Mortgage affordability caps the loan so the monthly payment stays within a chosen share of income; the affordable price equals the max loan plus the down payment.
Formula
maxMonthlyPayment = monthlyIncome × maxDti%
maxLoan = maxMonthlyPayment × ((1+r)^n − 1) / (r·(1+r)^n) (r = annualRate%/12, n = years×12)
maxPropertyPrice = maxLoan + downPayment
How to Use
- Enter household monthly income and available down payment.
- Enter the mortgage rate, term, and max payment-to-income ratio.
- Review the maximum loan, affordable price, and monthly payment.
FAQ
What payment-to-income ratio should I use?
Hong Kong banks generally cap the debt-servicing ratio at 50%, with an extra stress test requiring the ratio stay within 60% after a 2–3% rate rise. This tool lets you set the cap; for prudence, keep it at 40–50% to leave room for living costs and surprises.
Why doesn't it include the stress test?
This tool works from the rate and cap you enter. Actual approval adds a stress test ('under a 2–3% rate rise, the ratio must not exceed 60%'). For a conservative estimate, manually raise the rate by 2–3% before calculating.
Does the down payment include stamp duty?
No. The down payment is the cash paid to the seller; stamp duty, legal fees and agent commission are separate and should be budgeted on top — typically set aside about 5–10% of the property price for these incidental costs.
Is a higher price and longer term always better?
Extending the term lowers the monthly payment and raises the borrowable amount, but total interest rises substantially. 30 years is the common Hong Kong cap and is also constrained by the 'age + term' limit. Weigh the monthly burden against total interest.
Should I combine incomes?
Couples or joint buyers can combine household income to raise the borrowable amount, but the bank also checks both parties' debts and repayment ability. This tool already uses a single 'household monthly income' input to reflect that.
Why does the result differ a lot from the bank's approval?
This tool is a simplified estimate that excludes credit score, existing debt, the stress test and the bank's internal criteria. Use it for initial budgeting only; the final amount follows the bank's approval.
Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.