Mortgage Calculator
Calculate how much you can borrow for a home based on your income, interest rate and term.
How much can I borrow for a home?
Your maximum mortgage depends on several key factors: your gross annual income, your partner's income if applicable, the mortgage interest rate, and the chosen term length. Lenders use loan-to-income ratios to determine how much you can safely borrow while keeping your monthly payments affordable. In most European countries, this ratio typically falls between 4 and 5 times your gross annual income, though the exact figure varies by country and lender.
Interest rates play a crucial role in determining your borrowing capacity. When rates are low, you can borrow more because your monthly repayments consume a smaller portion of your income. Conversely, rising interest rates reduce your maximum mortgage because lenders must ensure you can still afford the payments. Even a 0.5% difference in interest rate can mean tens of thousands of euros in borrowing capacity. Fixed-rate mortgages offer predictability, while variable rates may start lower but carry the risk of future increases.
If you are buying with a partner, both incomes are typically factored into the calculation. Most lenders now count the second income at 100%, which significantly increases your combined borrowing power. However, borrowing the maximum amount is not always wise. Financial advisors recommend keeping your mortgage payments below 30% of your net monthly income to maintain a comfortable buffer for unexpected expenses, savings, and lifestyle costs.
First-time buyers should also budget for additional costs beyond the property price itself. Notary fees, surveyor costs, mortgage advice, and transfer tax can add 5-10% to your total outlay. In many countries, these costs cannot be included in the mortgage and must be paid from savings. A financial advisor can help you understand the full picture, including government schemes and grants that may be available to first-time buyers in your area.
Use our calculator above to get a first estimate of your maximum mortgage. For a definitive figure, we always recommend consulting an independent mortgage advisor who can assess your complete financial situation, including existing debts, future plans, and local regulations.