This is a question that many people struggle with. In the past it was easy: In most families the man was employed and the woman could stay home with the children. From the man’s income many families could get a mortgage with which they could buy a house with a garden. But, times have changed. Single earners do not always have to knock at the bank when they have a house in mind and need a mortgage. You hear more and more that people keep on renting, simply because they can not get a mortgage that matches their housing needs.
But how much mortgage can you get? What options do you have with a certain income and what is your maximum mortgage? We give you a few examples:
Bregje recently divorced. The house where she lived with her ex and the children, was in the name of her ex. He always paid the mortgage and did not have to buy it out. Now she has started looking for a mortgage to buy a house for her and the children herself again. Bregje has a fixed gross annual income of 26,000 euros and also receives partner and child support. Every month she has to spend about 2000 euros all together. She was told by her mortgage lender that she could get a maximum of 125,000 euros in mortgage on the basis of her own income, excluding alimony.
Ultimately, in connection with this amount, Bregje must have opted for a small apartment that is located a bit further outside the city and has taken out a repayment-free mortgage for this. Because the alimony she received on a monthly basis was not taken into account in the calculation, she went to mortgage on the maximum possible amount. Now, thanks to alimony, she still has enough money left over every month to do nice things for and with the children.
Hans is 28 years old and has studied for a long time. All this time he has continued to live with his parents and now that he has a good job, he wants to buy a house with a mortgage. His gross monthly income amounts to 42,000 euros per year. His student debt has been advanced by his parents and for the time being he does not have to pay anything for it.
Hans was told that he could get a maximum mortgage of just over 190,000 euros. This maximum amount of mortgage is not the same as the maximum purchase price and in the end Hans has found an apartment of 169,000 euros, which is very close to the maximum purchase price. His mortgage is 80 percent redemption free. At the moment the monthly mortgage payments for Hans are quite high, but Hans is hopeful that he will earn more in the future and is glad that he builds up with this mortgage for later.
First of all, it is important to consider what type of mortgage you want. Are you going for an interest-only mortgage where you only pay interest, or do you opt for a savings mortgage or an investment mortgage? And, are you a starter or have you been a homeowner before? What is your age? Do you have any other current loans? All these things weigh in what your options are for a mortgage.
If you want to know what maximum mortgage you can get, first ask yourself what you want to lose per month. In general, of course, the higher the mortgage amount, the more you pay per month.
If you want to list all your options for a mortgage, ask an independent mortgage advisor or a mortgage lender. They can make a calculation for you that is precisely tailored to your personal situation. You can also go to various websites for a calculation of your mortgage. There you get a nice idea of what you can get to a maximum mortgage; especially if you consult several. However, these results will never be as accurate as the ones presented to you by a mortgage advisor.