Mortgage loan: how much can I borrow?

The amount of a loan is always fixed according to the borrower’s repayment capacity and monthly payments. The ultimate question that always arises when applying for a home loan is: how much can I borrow? 

How much can I borrow to buy real estate?

How much can I borrow to buy real estate?

Do you dream of owning a home? You must understand that for the realization of your project, you will have to have recourse to a mortgage. When approaching your bank or financial institution, your first reaction is to ask “How much can I borrow ?” Before you review your loan history, the first thing your lender will do is check your repayment capacity.

For this, he must examine your income and establish your repayment capacity per month. You can define the amounts of these monthly reimbursements beforehand by deducting your fixed charges from your net salary. You also have the option of determining the amount of reimbursement that best suits your financial situation.

Facilitate your credit application by going through an online credit simulator

Facilitate your credit application by going through an online credit simulator

Taking advantage of an existing property means making a mortgage with it. If you already have an apartment or a detached house, this is also a great way to easily take out a loan. And this will allow you to make another real estate purchase. This personal contribution can come from your home or from aid granted by third parties who can be friends or family. You can integrate these contributions into your credit simulation. This can also be done online if you want to save time. Going through a loan simulator allows you to discover all the information relating to a specific type of loan.

Using this tool will give you a lot of information. As the amount which could be granted to you according to your financial situation, the rate and the monthly payments to be reimbursed. These calculated details allow you to see if the repayment term suits your income and financial possibilities. It is also the means to discover the most interesting credit offers on the market. If the amount of property you want to buy or the work you want to do is very large compared to the amount you can borrow, you can always adjust your needs in relation to the result of the simulation.

Additional conditions to be met for a loan request.

Additional conditions to be met for a loan request.

When applying for a mortgage, you have to be realistic about the monthly payments. Before taking the plunge, you should understand that these must not exceed 1/3 of your household income. If you win, for example, more or less € 2,500 net per month, your repayment capacity will not exceed € 850 per month. This capacity is, of course, flexible, depending on the size of your income and your expenses. The approval of a home loan also involves the estimation of the property or work that you want to undertake in the event of renovation.

Borrowing money without a bank: what are the pros and cons?

Today, banks are actually the main players in lending. When people need money and therefore want to take out a loan, it has almost become automatic to go to one of the different banks for this. Logical, because this has also grown over the years and for many people this is just the normal course of events. However, things can be done differently and you can also borrow money without using one of the banks. That is why we already list all the pros and cons when you are going to borrow money without calling on a bank.

BORROW FROM SOMEONE YOU DON’T KNOW

BORROW FROM SOMEONE YOU DON

If you don’t want to rely on a bank to borrow money, you can do that through someone you don’t know, for example. In itself it seems strange to borrow money from an unknown person, but the big advantage of this is that the person you are borrowing money from does not know your own situation. This means that, unlike one of the banks, that person may not refuse. A disadvantage can be that the person you lend money to will do everything to get his money + interest refunded. That is why borrowing money from someone you don’t know is really not recommended.

BORROW FROM AN INDEPENDENT SPECIALIST

BORROW FROM AN INDEPENDENT SPECIALIST

In addition to the well-known banks, there are now also many independent specialists who really have a lot of knowledge in the field of loans and installments. Often these specialists work together with various lenders, so you can count on dealing with people who are interested in providing loans and not in offering other products.

BORROW FROM YOUR FAMILY OR FRIENDS

BORROW FROM YOUR FAMILY OR FRIENDS

When people urgently need money, friends or family are often the first people they want to turn to. They ask their help and then ask if it is possible to borrow a certain amount, at a favorable rate of course. The big advantage of this situation is that you know your person and that you can usually also borrow money at a low interest rate or interest. Moreover, the money can also be available quickly. A disadvantage can be that borrowing money can affect your personal relationship with one of those people, such as your family or friends. For example, should there ever be a misunderstanding related to the financial situation, this will undoubtedly have consequences for your further personal relationship.

BORROW FROM YOUR EMPLOYER

BORROW FROM YOUR EMPLOYER

A final option where you could borrow money is from your employer. This can be done, for example, by requesting an advance on your wages or salaries and thus gaining extra money. An advantage of this is that you know the person you are lending money to and that you can borrow money at a low interest rate or interest. A big disadvantage is that it is your employer, with which you do not always want to share all personal information. It is also possible that your work starts to suffer from this financial agreement.