I'm getting near the time when I might start considering buying a property instead of renting soon, and I'm keenly aware of one major fact about this - it's a huge commitment. Not just in the traditional sense, but in the monetary one as well. I'll be responsible for all repairs, all upkeep, basically everything that goes into keeping a property up as a solid place to live.

Having never owned a property before, I'm stuck in a bit of a lurch - wondering how much of my monthly 'rent' payment I should be putting towards my 'mortgage' payment.

Assuming I can get a good loan and a solid down-payment on the property I want, what percentage of my expenses should go towards paying my mortgage, vs. percent paying for a rental?

Note: Property Tax in my area is about 2%.

1 Answer 1


Banks usually want to see you spending 28% or less of your total income on mortgage payments. The exact number may vary, but you probably shouldn't commit yourself beyond that point anyway.

How much you were paying in rent isn't relevant except that those funds will presumably be redirected into the mortgage payment.

Run a budget. Figure out what you can actually afford while still funding your other life goals and maintaining an emergency reserve.

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