Ownership cost ratio
nounown·er·ship cost ra·ti·opronounced OH-nuh-ship KOST RAY-shee-oh
Last reviewed 16 April 2026
What does the noun Ownership cost ratio mean?
Your total monthly ownership costs (mortgage plus all other recurring costs) divided by your monthly after-tax household income. A ratio above 0.30 is widely considered the threshold for housing affordability stress.
How the noun Ownership cost ratio is used
Our ownership cost ratio came out at 0.35, which means we are above the 0.30 stress threshold and need to rethink how much we borrow.
Synonyms
housing cost ratio
Related words
Cite this entry
MLA citation: "Ownership cost ratio." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/ownership-cost-ratio. Accessed 30 May 2026.
Chicago citation: How to Property. "Ownership cost ratio." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/ownership-cost-ratio.
APA citation: How to Property. (2026, April 16). Ownership cost ratio. https://howtoproperty.com.au/definitions/ownership-cost-ratio