Although some people prefer renting a house to buying a house, for example because they do not want to accept the obligation or because they do not yet know exactly what they want, many people still cherish the dream of eventually buying their own house. But is it always feasible? How much can you borrow for a house and can you buy the house of your dreams? You will receive general information about borrowing for a house and we will give you a number of practical examples.
How much can you borrow for a house?
On this website you can read how you get to know what maximum mortgage you can get. In ‘ How much mortgage can you get? ‘You get a nice idea of the maximum amount of mortgage you can expect with your income. But, if you know what you can borrow to a maximum mortgage, then the stocking is not finished. That is not the same amount as for which you can buy an apartment or house. How is that possible?
In addition to the cost price for the house, there are still a number of costs involved in the purchase that you have to take with you for the mortgage. For example, there are the costs of the buyer (notary fees, transfer tax) that you can add to the purchase price. Also costs for a broker can play a role, or a delivery inspection at a new house.
This means, suppose that you have a house in mind where a purchase price of 149,000 euros and you can borrow a maximum mortgage amount of 150,000 euros, it may be that you have to let the house pass you by. Although at first glance it might seem that the house costs less than what you can get from a mortgage: the amount that you can get a maximum mortgage is often not sufficient because of the additional costs. To know exactly where you stand, you can best consult with a mortgage advisor.
Examples of maximum purchase price
The maximum amount of mortgage that person A could receive amounted to 192,336 euros. Within that budget, this person could get a home of up to 178,089 euros.
Person B was told to get a maximum mortgage amount of 117.047 euros. The corresponding maximum purchase price of a home is 108,377 euros.
If you make a quick calculation, you learn that the maximum purchase price is approximately 93% of the maximum mortgage amount. If you already know what your maximum mortgage amount is, then multiply this by 0.93 and you know what the amount is for which you can search for a maximum of a dwelling. The exact amounts depend on a large number of factors. If you want to know exactly what your options are, you can submit your situation and wishes to a mortgage advisor. This then makes a concrete assessment with which you can get started.