Max out your mortgage
Banks everywhere use roughly the same math to decide how much you get. Once you know which limit is holding you back, you know exactly what to fix.
your income, roughly what Japanese banks will lend
of the price you can borrow in the Netherlands
of loans in Norway can break the rules each quarter
Three limits. The lowest one is yours.
Norwegians call it gjeldsgrad, Americans say DTI, Australians talk about serviceability. Underneath, nearly every bank checks the same three things and gives you whichever answer is smallest.
Income multiple
Your yearly income times a number the bank or regulator sets. Usually somewhere from 4 to 8.
Affordability
What's left each month after living costs and other debts, tested at a rate a few points above today's.
Deposit
The share of the price you have to bring yourself. Your savings divided by that percentage sets the max price.
Say you earn 80k, the cap is 5× (400k), affordability lands at 430k and your savings allow 450k. You get 400k. Saving more won't change a thing here. A raise or a co-borrower will.
Play with your number.
Pick a country, set your numbers, then drag moves into your application. The bars show which limit you hit first. It's a rough model for playing around, not a bank quote.
Moves
Drag one into your application, or just tap it.
Your application
Drag moves back out to undo them.
Drop moves here
Six levers.
Every trick in this guide pulls one of these.
Income on paper
The biggest one. Banks only count money they can verify and expect to keep coming in.
What you already owe
Every monthly payment, and in many countries every unused card limit, comes straight off the top.
Credit history
A clean file means a lower rate. A lower rate means a bigger loan passes the stress test.
Deposit
More equity gets you a lower loan-to-value, better pricing and more banks willing to say yes.
Loan setup
Term, fixed or floating, interest-only periods. All of it changes the payment the bank tests.
Who signs
A second income, a guarantor or a parent's pledge can change your number overnight.
Top 5 countries to borrow big
Ranked by how many times your yearly income you can realistically borrow for a home, with deposit and term as tie-breakers. Upper-end figures, so expect your bank to be a bit stricter.
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1
8×income
Japan
Rock-bottom rates and 35-year terms. Big banks lend 7 to 8 times salary to stable full-time employees, often with little or nothing down.
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2
6×income
New Zealand
A hard cap of 6× for owner-occupiers and 7× for investors. New builds are exempt from most limits, which is the real cheat code.
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3
5.5×income
Netherlands
The only big market where 100% of the price is normal. The second income counts in full, and energy-efficient homes come with an extra borrowing allowance.
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4
5×income
Denmark
Only 5% down, 30-year mortgage bonds and interest-only periods. Danish households carry some of the highest debt relative to income in the world.
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5
5×+ flex
Norway
5× gross income for total debt, but banks can go over for 10% of loans each quarter. Parents can put up their own home as security instead of you saving the deposit.
Also worth a look: the UK, where some lenders go to 6× for doctors and lawyers. The US, with zero-down VA loans and 30-year fixed rates. Switzerland, where part of the mortgage never has to be paid down at all.
30 ways to raise your number
Roughly in order of impact. Not everything works everywhere, so check the country pages too.
Income 5 moves
Get every income stream on paper
Bonuses, overtime, commission, shift pay, rent, child benefit and alimony often count, but only with paperwork. Have two to three years of pay slips, tax returns and contracts ready.
Apply right after a raise
Once a raise, promotion or new job is confirmed in writing, go. A lot of banks will take a signed contract instead of waiting for the first pay slip.
Get through probation first
Some banks discount or ignore income during probation. Changing jobs? Apply before you switch, or wait until probation ends.
Self-employed? Profit is what counts
Banks usually average your last two years of taxable profit. Heavy write-offs save tax and cost you borrowing power, so plan the years before a big purchase.
Count the rent from the home itself
Buying somewhere with a rentable room or unit? Many banks will add 70 to 100% of the expected rent to your income.
Debt 5 moves
Close the cards you don't use
In Norway, Sweden, Australia, the UK and plenty of other places, banks count the full card limit as debt, even at zero balance. In Norway, a 10k limit can cost you 50k of mortgage.
The US is the exception. Closing old cards there can hurt your score, so keep them open and paid off.
Pay off small loans first
Car loans and small personal loans have big monthly payments compared to what's left on them. Clearing the last few thousand can free up much more than you'd think.
Ditch buy now, pay later
Financed phones, furniture deals and BNPL accounts all show up in credit checks. Close them before you apply.
Consolidate before, not after
Rolling several debts into one longer, cheaper loan cuts your monthly payments, and monthly payments are exactly what the affordability test looks at.
Watch the student loan
Some banks use your actual payment, others a fixed share of the balance. A longer or income-based repayment plan can shrink the figure they use.
Credit 4 moves
Read your credit report and fix mistakes
Check every bureau in your country: Experian, Equifax, TransUnion, Schufa, CRIF, Dun & Bradstreet. Getting a wrong late payment removed can bump you into a better rate tier.
Keep card use under 30%, ideally 10%
Where scores matter, pay the balance down before the statement date so the low number is the one that gets reported.
No new credit for 6 to 12 months
No phone on finance, no store cards, no car loan. Every new account and hard check looks a bit worse right when it matters most.
Keep your bank statements boring
Many banks read the last 3 to 6 months. Stay out of overdraft, skip the betting sites and avoid big transfers you can't explain.
Loan setup 4 moves
Take the longest term on offer
30 years, or longer where allowed, lowers the monthly payment and stretches the affordability math. You can always pay extra later.
Compare how fixed and floating get tested
Some banks and regulators go easier on long fixed rates, for example 5+ year fixes in the UK. Ask how each product is assessed.
Ask about interest-only periods
Where it's allowed, the bank may test you on a smaller payment. Just remember the debt isn't shrinking while you're not paying it down.
Use first-home schemes
FHA and VA loans in the US, the Home Guarantee Scheme in Australia, NHG in the Netherlands, KfW in Germany, BSU in Norway. Smaller deposits, better terms.
People and banks 6 moves
Apply together
Two incomes almost always beat one. A partner, sibling or friend on the loan can double your income cap, but they're fully on the hook too. Put a co-ownership agreement in writing.
Bring in a guarantor
Parents can guarantee the loan or pledge equity in their own home. That can replace most of the deposit you'd otherwise need.
Talk to at least 3 to 5 banks
Each bank has its own internal limits, cost-of-living assumptions and rules for bonuses. Same file, very different answers. A 10 to 20% spread is common.
Use a mortgage broker
Brokers know which bank is relaxed about self-employed, contractors, foreign income or small deposits. Often the bank pays them, not you.
Ask for the flex quota
Many countries let banks break the rules for a share of new loans each quarter, like 10% in Norway or 15% in the UK. Apply early in the quarter with a strong file and ask outright.
Get pre-approved, then freeze
Lock in an approval in principle, then change nothing. Same job, same debts, same spending until the money is paid out. Banks often check again before closing.
Kids and family 6 moves
Know what each child costs you
Banks subtract standard living costs for everyone in the household, using tables like SIFO in Norway, HEM in Australia or Nibud in the Netherlands. Each child can knock 5 to 10% off what you can borrow, and the cost often goes up as they get older.
If you're planning a family, buying before the next child arrives usually gets you a bigger loan.
Make child benefit and support count
Child benefit, family allowances and child support you receive can often be added to your income, as long as it's documented and runs for several more years. Bring the agreement and recent bank statements.
Child support you pay counts against you
Payments to an ex are treated like a loan payment. A written agreement with a fixed amount is better than an informal one, because banks tend to assume the worst when the number is unclear.
On parental leave? Show the return date
Many banks will use your normal salary rather than leave pay if you have a letter from your employer confirming when you're coming back. Without it, some will only count what you're paid right now.
Family money: gift, not loan
Money from parents for the deposit is best given as a documented gift, often with a signed gift letter. If it's a loan, the bank counts it as debt and it eats into your limit.
Let family share the risk
Parents can guarantee the loan, pledge their own home, or join the mortgage without being on the deed. The UK calls this a joint borrower sole proprietor mortgage. Older family members' income may only count until retirement, so check the term.
Before you apply
- Pull your credit reports and dispute errors
- Stop opening new credit
- Start paying down small loans
- Build the deposit
- Close unused cards and BNPL
- Collect pay slips, tax returns and contracts
- Keep your statements clean
- Talk to a broker
- Apply with 3 to 5 banks within about two weeks, which many scoring models treat as one check
- Ask about the flex quota
- Compare total cost, not just the max
Questions people actually ask
Does checking how much I can borrow hurt my credit score?
An approval in principle often uses a soft check that doesn't affect your score. A full application usually means a hard check. In the US, several mortgage checks within about two weeks are counted as one, so do your shopping in a tight window.
Should I pay off debt or save for a bigger deposit?
Look at which limit you hit first. If it's the income multiple or affordability, paying off debt wins, especially small loans with big monthly payments. If it's the deposit, keep saving. The loan lab above shows which one it is for you.
Is a longer term always better?
For the size of the approval, yes. For the total cost, no. A 30-year loan costs a lot more in interest than a 20-year one. Many people take the longest term to get approved and then pay extra each month when they can.
Can I use a bonus or overtime as income?
Usually, if you can show it's been paid regularly for one to two years. Many banks only count part of it, often 50 to 80%. A letter from your employer saying it will continue helps.
Does a broker get me more than going to my own bank?
Often, yes. Banks have very different internal rules, and a broker knows which one is generous with your kind of income. Your own bank may give you a better rate as an existing customer, so get a quote there too.
What happens if rates go up after I borrow the max?
On a floating rate, your payment goes up straight away. That's why banks stress-test you, and why you should test yourself at a few points higher than today. A fixed rate for some or all of the loan buys you time.
Can I borrow in another country than where I live?
Sometimes, but foreign buyers usually face bigger deposits, often 25 to 40%, higher rates and fewer lenders. Banks that operate in both countries, or brokers who specialise in expats, are usually the easiest route.
Got a company?
Business loans are judged on cash flow, not your salary, and often don't count against your personal limits. Here's how to use that.
Push the approval, not your luck. Inflating income, hiding debt or editing documents is mortgage fraud everywhere. You can lose the loan, the home and your clean record.
And the most you can borrow isn't always what you should. Run your own budget with rates 3 to 5 points higher than today and make sure you'd get through a few months without pay.