Purchasing your dream house?

You should determine how much you can spend before starting your search for your ideal home.

Where you end up depends on two main factors. The first is income, and the second is personal property. The calculation for a mortgage is based on these two elements. Together, you and one of our consultants will calculate all the costs and determine what you can afford.

The income is taken into account when determining the mortgage payment. The bank determines affordability because it wants to ensure that you will be able to pay back the amortization and interest now and in the future. This calculation takes future interest rate increases into account to determine whether you would still be able to repay the entire amount borrowed. An assumed 5% mortgage interest rate is used in the affordability calculation. You get a specific amount by multiplying this hypothetical amount by the estimated and required amortization and maintenance. Up to one-third of your annual income cannot be used for this.

Own assets make up the second component. You must have a minimum of 20% equity in the loan because the bank will only lend you a maximum of 80% of the total amount. Two portions make up this 20% equity. At least 10% must come from savings, investments, account balances, insurance policies, inheritances, and other sources. Your pension may be used to cover the remaining 10%. If you decide to sell your home again, the same amount that you have deducted from your pension must be reimbursed and cannot be applied to another expense.

We highly recommend that you calculate everything with us because equity has a significant impact on the affordability calculation. If you need help with the calculation, don’t be afraid to get in touch with us.