{"id":417,"date":"2019-06-09T18:03:30","date_gmt":"2019-06-09T14:03:30","guid":{"rendered":"https:\/\/www.mortgagefinder.ae\/faq\/?p=417"},"modified":"2023-01-16T17:19:00","modified_gmt":"2023-01-16T13:19:00","slug":"how-is-mortgage-affordability-calculated","status":"publish","type":"post","link":"https:\/\/www.mortgagefinder.ae\/faq\/how-is-mortgage-affordability-calculated\/","title":{"rendered":"How to calculate mortgage affordability?"},"content":{"rendered":"

If you’re wondering how to calculate mortgage affordability, bear in mind that most banks will calculate affordability slightly differently, but a general rule of thumb is that they will take only 50% of your monthly income into account when calculating this.<\/p>\n

From this 50% they will then deduct any other credit commitments you have (e.g. car loans, personal loans and approximately 5% of all your credit card limits), to work out your maximum affordability.<\/p>\n

They will then carry out a stress test by applying a stress rate of interest which varies between 3.5% to 8% depending on the bank. The aim of this is to confirm that you will still be able to afford your mortgage repayments if the interest rates were to increase to the test level.<\/p>\n

Try our Affordability calculator<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

If you’re wondering how to calculate mortgage affordability, bear in mind that most banks will calculate affordability slightly differently, but a general rule of thumb is that they will take only 50% of your monthly income into account when calculating this. From this 50% they will then deduct any other credit commitments you have (e.g. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[52],"tags":[],"yoast_head":"\nHow to calculate mortgage affordability? | Mortgage Finder - FAQ<\/title>\n<meta name=\"description\" content=\"Learn about how banks in Dubai and the UAE calculate your affordability when you are looking for a mortgage to finance your property purchase.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mortgagefinder.ae\/faq\/how-is-mortgage-affordability-calculated\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to calculate mortgage affordability? | Mortgage Finder - FAQ\" \/>\n<meta property=\"og:description\" content=\"Learn about how banks in Dubai and the UAE calculate your affordability when you are looking for a mortgage to finance your property purchase.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.mortgagefinder.ae\/faq\/how-is-mortgage-affordability-calculated\/\" \/>\n<meta property=\"og:site_name\" content=\"Mortgage Finder - FAQ\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-09T14:03:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-16T13:19:00+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Collyne\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.mortgagefinder.ae\/faq\/#website\",\"url\":\"https:\/\/www.mortgagefinder.ae\/faq\/\",\"name\":\"Mortgage Finder - FAQ\",\"description\":\"Find the best mortgages and home loans across the UAE\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.mortgagefinder.ae\/faq\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.mortgagefinder.ae\/faq\/how-is-mortgage-affordability-calculated\/#webpage\",\"url\":\"https:\/\/www.mortgagefinder.ae\/faq\/how-is-mortgage-affordability-calculated\/\",\"name\":\"How to calculate mortgage affordability? 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