Calculating Mortgage and Housing Affordability in Africa

Housing affordability is generally a function of three things: (1) a household’s income, (2) the price of the house that is available for sale, and (3) the terms of the mortgage loan for which the household qualifies. In these two calculators, we have taken mortgage lending data that we collected from major banks and lenders across Africa, and household income from CGIDD, and used this to calculate housing affordability by country.

There are two options – you can either input a “house price” and see what it would cost to service a mortgage loan for that house in each country, depending on the mortgage instrument that exists; or you can input a “monthly income” and see what cost of house someone with that income would afford, with a standard mortgage in that country.

Play with the calculators and let us know what the results mean for you.

Sources: C-GIDD (Canback Global Income Distribution Database) 2015, the Housing Finance in Africa 2016 Yearbook, and CAHF surveys.