How Big a Mortgage Can I Afford?
Updated 3 November 2026 · Land & Property editorial team
If a bank caps repayments at 35% of gross pay, a UGX 5 million monthly income supports a repayment of UGX 1.75 million, which is a loan of about UGX 109 million at 18.73% over 20 years. At a 70% loan that points to a home near UGX 156 million. The 35% cap and the rate are assumptions you can change, and banks decide case by case.
- Repayment cap used
- 35% of gross monthly pay (assumption, check with your bank)
- Rates tested
- 16%, 18.73% and 22% on a 20-year loan
- Average shilling lending rate, Feb 2026
- 18.73% (all shilling loans)
- Central Bank Rate
- 12% since 14 Oct 2026
How does the mortgage affordability tool work?
The mortgage calculator starts with a price and gives you a repayment. This tool works the other way. You enter your gross monthly income, your other monthly loan repayments, a rate and a term, and it returns the largest loan whose repayment fits under a cap. It then divides by the loan share to suggest a home price, and shows the deposit you would need.
- Gross monthly income before tax, in UGX.
- Existing monthly repayments on other loans, which are subtracted from the cap.
- Repayment cap. We start at 35% of gross pay. See the next section for where that comes from.
- Rate and term. You enter the rate from a bank offer. We start at 20 years.
- Loan share. We start at 70% of the price, which leaves a 30% deposit.
The answer is a loan size a bank may consider. It is not an approval. The bank also looks at your employment, savings, credit record, the title and the valuation of the property.
What debt-to-income assumption does it use, and where does it come from?
We use 35% of gross monthly pay as the cap on total loan repayments. Housing Finance Bank's diaspora FAQ says repayments are limited to 35% of gross pay. Other banks may set a different share, and a bank may apply the cap to net rather than gross pay, so treat 35% as a starting assumption and change it in the tool to match the offer you are given.
The tool also lets you test a lower cap, such as 25% or 30%. A lower cap is a safer way to plan, because the bank's limit is the most it will allow, not the amount that is comfortable for your household. See mortgages in Uganda: banks, rates and deposits for what each lender publishes.
How big a loan does my income support?
The table applies the 35% cap to a 20-year loan at three rates. The rates are dated guides, not bank quotes: the weighted average shilling lending rate was 18.73% in February 2026 (Ministry of Finance report, as summarised by Eagle Online on 23 April 2026), and a housing finance review quotes mortgage rates of 16% to 22% from a bank email of August 2023. The Bank of Uganda raised its Central Bank Rate from 9.75% to 12% on 14 October 2026, so your offer may be higher than February's figure. The numbers are our own arithmetic.
| Gross monthly income | Repayment at 35% | Loan at 16% | Loan at 18.73% | Loan at 22% | Home price at 18.73% and a 70% loan |
|---|---|---|---|---|---|
| UGX 3,000,000 | UGX 1,050,000 | UGX 75.5M | UGX 65.6M | UGX 56.5M | UGX 93.8M |
| UGX 5,000,000 | UGX 1,750,000 | UGX 125.8M | UGX 109.4M | UGX 94.2M | UGX 156.3M |
| UGX 8,000,000 | UGX 2,800,000 | UGX 201.3M | UGX 175.0M | UGX 150.8M | UGX 250.0M |
| UGX 12,000,000 | UGX 4,200,000 | UGX 301.9M | UGX 262.5M | UGX 226.2M | UGX 375.1M |
| UGX 20,000,000 | UGX 7,000,000 | UGX 503.1M | UGX 437.6M | UGX 376.9M | UGX 625.1M |
Read across a row and you see how much the rate matters. On UGX 8 million a month, the supportable loan falls from about UGX 201 million at 16% to about UGX 151 million at 22%. The figures assume no other debts. Any existing loan repayment comes straight off the cap.
How much deposit do I need, and what else must I pay?
At a 70% loan the deposit is 30% of the price. A home of UGX 250 million needs UGX 75 million of your own money. A housing finance review reports a Bank of Uganda loan-to-value ceiling of 85% from 2020, which would mean a 15% deposit, but lenders and products differ, so ask each bank what it lends on your property.
On top of the deposit, budget for the costs of the purchase and the loan: valuation, legal work, fees at application and approval, and government charges on the transfer. The property transfer cost calculator adds the government charges, and the bank's offer should list its own fees. Ask for them in writing.
How does this compare with homes on our listings?
Our listings show how far a mortgage stretches. In the snapshot of 93 published listings, the median asking price for a plot was UGX 155 million, for a house UGX 765 million and for an apartment UGX 1.3 billion (Land & Property listings, Nov 2026). Only 4 of the 33 houses and apartments were asking UGX 300 million or less. These are asking prices, not sale prices, and they are listings by sellers and agents, so negotiation can move them.
At 18.73% over 20 years, a UGX 765 million house with a 70% loan needs a repayment of about UGX 8.6 million a month, which on a 35% cap means a gross income of about UGX 24.5 million a month. That is why many buyers start with a plot or a smaller home. You can browse house listings and enter any price into the tool. If your income is below what the table needs, read about using a land title as loan security, which is a different route with its own risks.
What are the limits of this tool, and is it financial advice?
It is not financial advice. Land & Property is not a bank or a licensed adviser, and the tool does not know your full position. It cannot promise a loan, a rate or a price. It also assumes a fixed rate, while a variable-rate loan can cost more if rates rise, as they did in October 2026.
Keep a margin. If a repayment uses the whole cap, one missed month of income can put the home at risk, because the bank can sell a property to recover its money. Gather your papers early using documents a Ugandan bank wants for a mortgage, then ask our team on WhatsApp or by email if you want to talk through your options.
Frequently asked questions
How much mortgage can I get on my salary?
If a bank allows repayments up to 35% of gross pay, a UGX 8 million monthly income supports UGX 2.8 million of repayments, which is a loan of about UGX 175 million at 18.73% over 20 years. Banks decide case by case, and other debts reduce the figure.
What deposit do banks need?
It varies. We start the tool at a 70% loan, a 30% deposit. A housing finance review reports a Bank of Uganda loan-to-value limit of 85%, which would mean 15%. Ask each bank what it lends on your property, and add fees and purchase costs on top.
Where does the 35% cap come from?
Housing Finance Bank's diaspora FAQ says repayments are limited to 35% of gross pay. Other lenders may use a different share or apply it to net pay, so the tool lets you change the cap to match the offer you receive.
Is the result an approval?
No. The result is a loan size a bank may consider. Approval depends on your income evidence, other debts, credit record, the title and the bank's valuation. The tool is a planning aid and not financial advice.
Sources
- Uganda's shilling lending rates rise to 18.73% in February 2026, Eagle Online, 23 April 2026 (accessed 2026-11)
- Uganda housing finance profile, Centre for Affordable Housing Finance in Africa (accessed 2026-11)
- BoU raises interest rate to 12 as shilling weakness stokes inflation, Daily Monitor, October 2026 (accessed 2026-11)
- Diaspora FAQs, Housing Finance Bank Uganda (accessed 2026-11)