Mortgage Guideline

The 28/36 Mortgage Rule

Screen housing cost against income.

This framework limits housing costs to 28% of gross monthly income and total debt payments to 36% of gross monthly income.

Check Ratios Read explanation ↓

28%Housing cap

36%Total debt cap

DTICash-flow lens

Explanation

Framework and equations.

Definition

The rule is a debt-to-income screening model for mortgage affordability. It compares both housing-only and total debt burden against monthly gross income.

Housing ratio = housing payment / gross income
Total debt ratio = total debt payments / gross income

Limitations

Lender underwriting criteria vary by region and product.
Does not include lifecycle events or emergency buffers.
Useful as baseline screening, not final loan advice.

Calculator

Evaluate 28/36 ratio compliance.

Enter gross income, housing payment, and total debt payments to check both thresholds.

Gross monthly income Monthly housing payment Total monthly debt payments

Example Scenario

Sample mortgage affordability check.

Scenario inputs

Gross monthly income: INR 150,000
Housing payment: INR 38,000
Total debt payments: INR 50,000

Calculation walkthrough

Housing ratio = 38,000 / 150,000 = 25.3%
Total debt ratio = 50,000 / 150,000 = 33.3%
Both values are below 28% and 36% thresholds.

Chart

Actual ratios vs rule thresholds.

The chart compares your entered ratios with 28% and 36% guideline limits.

Disclaimer: This model is informational and not mortgage advice. Loan approval, pricing, and suitability depend on credit profile, reserves, and lender policies.