We are regularly asked the question ‘how much mortgage can I get?’ . Useful information to know if you have seen a nice home. How much mortgage you can get depends mostly on your income and the house value of the house.
Income for determining how much mortgage you can get
The bank determines how much mortgage you can get. The bank looks at your income . For this you must be able to hand over your payslip, or (sometimes an) overview of your income over the past 3 years.
The mortgage provider looks at your gross annual salary including holiday pay. Do you want to buy a house together with your partner? Then the lowest income counts for a part.
Key interest or actual mortgage interest
To determine how much mortgage you can get, interest is also taken into account. After all, the interest rate influences how much you have to pay back to the bank. The higher the interest rate, the less you can borrow.
Are you planning to choose a fixed rate period that is shorter than 10 years? Then a test rate is used to calculate what your maximum mortgage is. The key interest rate is determined by the regulator of the financial sector: Financial Markets Authority (AFM). The current mortgage interest rate is used for longer fixed-rate periods.
Loans affect how much mortgage you can get
Do you have current loans , do you have to pay alimony for your ex, or do you have a student loan ? For some homes, a leasehold has to be paid. In a house with long lease you become the owner of the house, but not of the land on which the house stands.
This is for example the municipality, private individual or lender. As if you were renting the land, so that your home can stay there. All these extra costs ensure that you can get a less high mortgage.
Your loans, your study debt, partner alimony and any ground rent are therefore taken from your income. You can get a mortgage if there is enough income left.