A homebuyer should typically be able to afford a home that is 3 to 3.5 times your annual salary (or income).    Another general rule is your total monthly expenses (including the new home) should never be above 45% of your gross (pretax) income.   For a first time home buyer, we typically recommend for this ratio to be 35% or less.   You should always consult with a professional mortgage advisor (not your typical order taker at the bank).