Calculating mortgage affordability can often feel like rocket science (excuse the pun) but it need not be that way.

Calculating what you can borrow is simple but there are lots of variables involved. In blue below we have a very simple break down of how much you can borrow. Simple multiply your income by 5 for employed and 4.5 for self employed. 

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​Employed Applicants: 5 Times Your Income

Self Employed Applicants: 4.5 Times Your Income

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It can often be as simple as above, but more often then not your expenditure will have a huge impact on what you can borrow. Things such as credit cards, loans, student loans, regular committed expenditure will all have a negative impact.

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On the bright side, you can potentially borrow more than the above, FTB for example can borrow more, certain professions can borrow more and those on higher incomes, there are many different variables.