Can We Afford a Bigger House on One Income If I Stay Home With the Baby?
It may be possible, depending on the legal, financial, and property details involved. Transitioning to one income changes mortgage affordability significantly, and the math needs to be run well before assuming a target price range still works.
How the numbers change
If a household currently qualifies based on two incomes, losing one typically cuts qualifying income by roughly 35-50%, depending on the income split between partners, directly reducing the loan amount a lender will approve.
Timing the mortgage application
Applying for a mortgage while still employed, even if planning to leave work shortly after closing, can allow the full two-income qualification to apply, since lenders generally evaluate income at the time of application rather than projecting future changes, provided the departing income isn't explicitly disclosed as ending imminently in a way that affects the loan approval.
Building in a buffer for one-income budgeting
Beyond loan qualification, it's worth stress-testing the actual monthly budget on one income specifically, not just what a lender approves, factoring in reduced income, any new childcare-related savings from a parent staying home, and other adjusted expenses.
Planning for the possibility of returning to work later
Some parents plan to return to work after a period of staying home, and it's worth considering whether a slightly larger mortgage, sized around eventual dual income, makes sense if that return is fairly certain, versus sizing the purchase conservatively around a single income if the timeline or decision to return is less clear.