Does your monthly budget have room for a mortgage?

Use this worksheet to give you an indication of your financial health when including a monthly mortgage payment and typical homeowner expenses. This worksheet will help you understand your total debt-to-income (DTI) ratio, which compares your earnings against monthly expense obligations. Mortgage lenders consider DTI ratio when determining the home loan amount you are eligible for and whether or not you already carry too much debt for a new loan.

  • Your total housing expense, including taxes and insurance, should not exceed 31% of your gross income
  • Keep your debt at 43% or less of your gross monthly income to show lenders you can control your overall spending

If your monthly budget results in a negative sum, then you should take the time to re-evaluate your spending habits, debt and home financing budget.

Download worksheet here (2 pages)