Can I afford a 500k house on 100k salary?
As noted in the previous scenario, a 5-to-1 ratio between your home price and annual income is considered a stretch for most households. While some lenders may be willing to approve a loan of this size, you should treat this as a high-budget decision. A mortgage of this magnitude will require a strict, disciplined budget to ensure you can meet your obligations while still covering other necessary expenses. The primary risk is that unexpected costs—such as home repairs or sudden lifestyle changes—could easily overwhelm your budget because your fixed housing costs are so high relative to your income. It is highly recommended that you stress-test your monthly finances to see if you can comfortably handle the payment before committing to a purchase that significantly exceeds standard affordability guidelines.
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