Housing should be 25-30% of income… before or after taxes?

So I know that generally one shouldn’t spend more than 25-30% of their income on housing (whether that be rent or mortgage) but what I’m not sure about is that 25-30% of your net income or gross income? Anyone know?

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2 Responses to “Housing should be 25-30% of income… before or after taxes?”


  1. 1 FourPillars November 19, 2007 at 9:16 pm

    Telly left a comment on my blog recently that according to the CMCH (or whatever), the maximum mortgage amount is 32% of your gross income.

    Mike

  2. 2 centsprout November 21, 2007 at 1:16 pm

    Thanks for that!


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