Income Required for a Mortgage Calculator
To qualify for a $800,000 home with $160,000 down, you would need a household income of about $148,900.
Household income needed
$148,900
About $12,400.83 a month, gross. This qualifies you at the 6.49% stress-test rate — not the 4.49% you would actually pay.
- Mortgage required
- $640,000
- Payment at your actual rate
- $3,538.67
- Payment used to qualify you
- $4,282.99
- Binding ratio
- TDS 43.0%
At the 6.49% stress-test rate
| Scenario | Income needed | Difference |
|---|---|---|
| Rate 1% lower | $137,200 | −$11,700 |
| As entered | $148,900 | — |
| Rate 1% higher | $161,000 | +$12,100 |
| No other debts | $148,900 | −$0 |
Why the number is higher than you expected
Lenders do not qualify you at the rate you pay. They use the stress-test rate — the greater of your rate plus 2% or 5.25% — and count property taxes, heating and half your condo fees against the same limit.A single number cannot capture how different lenders treat bonus income, self-employment, rental income or existing debts. Clover Mortgage Inc. is a licensed mortgage brokerage. This calculator provides estimates for information only and is not an offer of credit, an approval, or financial advice.
Every mortgage is different. A Clover Mortgage broker can confirm what you actually qualify for across more than 50 lenders — at no cost to you.
Household income needed
$148,900
Common questions
- Why is the income needed higher than I expected?
- Because lenders qualify you at the stress-test rate — the greater of your contract rate plus 2% or 5.25% — not the rate you will actually pay. Property taxes, heating and half your condo fees also count against the same limit.