Mortgage Planning
Recommended Safe Loan Level Explained
This guide explains the “recommended safe loan” in plain language—what it means, why it can differ from lender maximums, how costs and shocks affect it, and how to use it when you compare scenarios.
Published: January 1, 2026 · Updated: January 1, 2026 · By FinToolSuite Editorial
Open the stress tester
Run a scenario, review the recommended safe loan, and compare two runs with one change.
Disclaimer
- Educational only. “Safe loan” is model-based and not advice. No guarantees.
- Examples are illustrative.
- Results depend on assumptions and randomness.
What the safe loan means
The recommended safe loan is a model suggestion based on simulated stress outcomes. It aims to keep DTI and default risk in a more comfortable range, not just in the average path.
Why it can differ from lender max
Lender maximums follow lender rules. The safe loan uses your assumptions and simulated shocks, so it can be lower to reflect higher taxes, HOA, or maintenance that push DTIs under stress.
How costs and shocks affect it
Higher property taxes, PMI/LMI, HOA, or maintenance lift monthly costs, which can lower the safe loan. Rate or income shocks widen the DTI distribution, also pulling the safe loan lower.
Use it with scenarios
Save two scenarios with one change (price, down payment, or rate assumption). Compare the safe loan, DTI mid and high percentiles, and default probability direction to see how each change affects comfort.
FAQs
Can the safe loan be higher than my target?
Yes, but still check DTI tails and default probability before relying on it. It is not advice.
Should I round inputs?
Conservative rounding can make the safe loan more cautious.
How do I see related metrics?
Review the DTI curve and model default probability for context.
Can I compare two properties?
Yes. Keep assumptions the same and compare safe loan and DTI side by side.
Where is the Privacy Policy?
See Privacy Policy before sharing exports.
Check your safe loan
Run the mortgage affordability stress tester and compare the recommended safe loan across two scenarios.