Lenders qualify you on gross income, so a 45% gross ratio and a 70% net ratio are two lenses on the same payment. The net number alone tells us very little. Net income is muddied by choices like tax withholding. Plenty of people get $8,000 to $10,000 back every year, which amounts to an interest-free loan to the IRS that could have been showing up in their paycheck instead. Adjust the withholding and the scary net ratio moves a lot. The number we'd actually study is payment shock: how the new payment compares with what you're used to carrying. Going from $1,500 in rent to a $5,000 payment is a big jump worth examining closely. The follow-up questions matter more than the ratio. How much were you saving each month while paying $1,500? How much reserve cushion would be left after closing? Someone who was saving aggressively at $1,500 has already proven they can carry more. So look at how far the housing payment climbs above what you comfortably paid before, and whether the move is a real stretch or closer to lateral. A lender won't approve you into a payment designed to fail, but only you know your spending habits and where your comfort line sits.