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How much house can you actually afford?
There is a big difference between the amount a bank will lend you and the amount you can comfortably live with. Lenders look at ratios on a form. You have to live in the house, pay for the boiler when it breaks, and still afford a holiday now and then. Here is how to think about it honestly.
Start with the 28/36 rule
It is old, but it has stuck around because it works. The idea is simple: keep your housing costs under 28% of your gross monthly income, and all your debts combined — housing plus car, loans and cards — under 36%. On a €60,000 salary, that is roughly €1,400 a month for housing before other debts pull it down.
The reason for two numbers is that a mortgage rarely exists in isolation. If you already have a car loan eating into your budget, the amount left for a house shrinks. Our mortgage calculator has an affordability tab that runs both checks and works backwards to a sensible price.
Remember the costs beyond the mortgage
The monthly repayment is only part of owning a home. There is property tax, building insurance, and the steady drip of maintenance — a rule of thumb is to set aside around 1% of the home's value a year for upkeep. None of that shows up in a basic "how much can I borrow" number, which is exactly why people feel stretched after buying.
The deposit changes everything
A bigger deposit does three good things at once: it shrinks the loan, lowers the monthly payment, and often unlocks a better interest rate. It can also remove the need for mortgage insurance. Saving a little longer for a larger deposit frequently does more for your budget than chasing a slightly bigger loan.
Leave room for real life
This is the part the formulas miss. A lender cannot see that you have two kids in activities, a long commute, or a plan to go down to one income for a while — and the 28/36 table shows how little slack a maximum borrow leaves: on €60,000, €500 a month of other debts already cuts affordable housing from €1,400 to €1,300, and €800 cuts it to €1,000. Buying below the limit is what keeps that squeeze from arriving after you have signed.
A simple way to pressure-test the number
Before committing, try living on the new payment for a few months. Set up a standing transfer for the difference between your current housing cost and the future one, into a separate account. If that feels fine, you have your answer — and a nice head start on savings. If it pinches, better to know now than after you have signed.
The 28/36 rule, worked on €60,000
The post's example salary of €60,000 means €5,000 a month gross. The 28% housing ceiling is 0.28 × €5,000 = €1,400 a month, and the 36% all-debts ceiling is 0.36 × €5,000 = €1,800 a month. The two ceilings interact, and the table shows how: the housing figure you can actually afford is the lower of the 28% ceiling and what is left of the 36% ceiling after your other debts.
| Other monthly debts | 36% ceiling minus other debts | 28% housing ceiling | Housing you can afford |
|---|---|---|---|
| €0 | €1,800 | €1,400 | €1,400 |
| €300 car loan | €1,500 | €1,400 | €1,400 |
| €500 debts | €1,300 | €1,400 | €1,300 |
| €800 debts | €1,000 | €1,400 | €1,000 |
With no other debts or a €300 car loan, the 28% ceiling binds and housing stays at €1,400. Once other debts pass €400 a month, the 36% ceiling takes over and housing shrinks: €500 of other debts leaves €1,300 for housing, €800 leaves €1,000. This is the mechanism behind the post's warning that a mortgage rarely exists in isolation — a car loan does not just add a payment, it directly reduces the house payment you can carry.
The costs beyond the mortgage, in numbers
The post's maintenance rule of thumb is 1% of the home's value a year. On a €200,000 home that is €2,000 a year, about €167 a month; on a €300,000 home, €3,000 a year or €250 a month; on a €400,000 home, €4,000 a year or about €333 a month. None of that is in a basic borrowing number, and it sits on top of property tax and building insurance, which the post names as the other costs beyond the repayment. A €1,400 housing ceiling that already includes the repayment leaves less room than it first appears once €250 of monthly maintenance is inside it — which is exactly why people feel stretched after buying, even when the mortgage itself looked affordable.
Pressure-testing, worked
The post's pressure test is concrete: live on the new payment for a few months before committing. If your current housing cost is €900 and the future payment is €1,400, the difference is €500 a month. Transfer €500 a month into a separate account for three months and two things happen: you learn whether the new payment pinches, and you accumulate €1,500 toward the deposit or the moving costs. If it pinches, you have learned it before signing, when the lesson is free. If it feels fine, you have your answer and a head start. The test works because it replaces a spreadsheet opinion with three months of lived evidence.
Frequently asked questions
Does the bank's maximum equal what I can afford?
No, and that is the post's opening point. A lender looks at ratios on a form; you have to live in the house, pay for the boiler when it breaks, and still afford a holiday now and then. The 28/36 rule is a ceiling for comfort, not a target, and many people happiest with their purchase deliberately bought below their limit.
Does the 28/36 rule already include maintenance?
No. The rule covers debt payments — the mortgage plus other loans and cards. Property tax, building insurance and the roughly 1% a year of maintenance sit outside it, which is why a payment that fits the rule can still feel tight once those costs arrive. Budget them separately, on top of the rule.
Is a bigger deposit really worth waiting for?
Usually, but weigh it against the wait. A larger deposit cuts the loan you need, which is what pulls the monthly payment down inside the €1,400 ceiling on a €60,000 salary — and the pressure test above is the way to judge the trade: if living on the higher payment for three months pinches, the extra months of saving are cheaper than years of a stretched payment. If it feels fine, waiting longer buys you less than moving sooner.
The takeaway
Affordability is not one number, it is a comfortable range. On €60,000 that range tops out at €1,400 a month for housing — before roughly €250 a month of maintenance on a €300,000 home, on top of property tax and insurance. Run your figures through the mortgage affordability calculator and aim for the lower, calmer end of what is possible rather than the maximum.