Our Can I Afford a Second Home Calculator is the perfect tool for potential second home buyers in the United States and Canada. Whether you’re interested in buying a seasonal property, vacation home or other part-time residence, this calculator will help you determine how much you can afford in a second home. 

How it Works

Simply input the corresponding amounts, including your monthly income and debts, down payment amount and mortgage terms to determine the maximum second home purchase price you can afford. 

A note about rental income: if you expect to generate rental income from your second home, try our investment property mortgage calculator instead. 

Input Guidelines

Here are some recommended calculator input guidelines to follow:

• Maximum debt-to-income ratio. Most lenders will not permit an overall debt-to-income ratio in excess of 43% (i.e. total monthly debts over gross monthly income). As such, our calculator will show a negative result if your ratio exceeds this amount.
• Down payment. Be prepared to come up with at least 20% or more of the purchase price as a down payment. Unlike mortgages on primary residences, second home lenders will typically require higher down payments given the increased risk.
• Interest rate. Similar to the heightened down payment requirements, you should expect to pay interest rates that are 25 to 50 basis points higher than mortgages for primary residences. As of August 2021, several of the “Big Four” US banks are offering fixed rates on primary mortgages for 2.75% and in Canada several of the “Big Five” banks are offering 2.44% on fixed mortgages for primary residences. At 25 to 50 basis points higher, you’re looking at rates of between 3.0% to 3.25% in the US and between 2.69% to 2.94% in Canada for a second home.

Many second home lenders will also require a credit score of at least a 640. Some will require even higher scores. The higher your score, the lower your risk of default and the higher your chance of approval.

Can I Afford a Second Home Calculator

Other Resources

Be sure to explore our other articles and resources, including everything you need to know before buying a second home.