How much could you borrow for mortgage?
16 February, 2023 | Alba Tebar
There are lots of factors, agents and situations that can influence your mortgage and that can make it go up or down, depending on the context. But, shortly, it mainly depends on three things: the appraised value of the property you want to buy, the borrowing capacity of the applicant, and their savings. And do not panic, because we are going to discuss all of these aspects afterwards, with a little bit more details and deeply understanding each of them.
In any case, establishing an idea of the maximum mortgage amount that will be granted is essential to make the purchase safely and decisively.
Finding your dream house is not as easy as it may seem. It is not only about finding the right location, distribution, price and space; but also about finding the perfect bank and mortgage to obtain it. So, when you finally find all these aspects, you cannot let them escape.
For this reason, it is essential to have good knowledge and advice on the mortgage loans that are offered by the banks. At this point, from Hipotecasplus we advertise ourselves as your best guides and advisors during this delicate process. We operate as intermediaries between banks and costumers, so find for you the best mortgage option in the whole market, according to your needs and personal interests.
In fact, our huge experience within this sector will guarantee you the success and security that you may need. We can assure you that, at our hands, you have nothing to worry about! So, remember to do not hesitate to contact us if you have any doubts or need some advice when finding the perfect house and the perfect bank for you. Contact us now, without any commitment! We will be really happy to be able to help you and make you and your family happier!
Mortgage requirements
To start with, one of the main things you should be aware of when talking about mortgage and banks, is the requirements that banks demand to grant a mortgage to a non-resident.
1. If your income comes from the euro zone, it is necessary to contribute 30% of the purchase price + writing expenses. If your income comes from another part of the world, we will have to know in which currency you receive it and from there we will see if we can continue offering you financing 70% of the purchase price or it will drop to 50%.
2. The mortgage payment must be equal to or less than 35% of your income, taking into account other loans or payment obligations.
3. You must have an indefinite employment contract with at least 1 or 2 years of employment in the same company.
However, from Hipotecasplus, as mortgage managers and experts in the sector, we can get improvements of these % according to your case.
Borrowing capacity
A factor that influences a lot when talking about mortgage is your borrowing capacity. As the Banco de Españarecommends, you should not be spending more than 35% of your monthly income in order to pay mortgage. Nevertheless, this percentage could be expanded until a 40%, if needed. This could happen, for example, when you have further debts.
The thing is that, if you had other loans, the monthly payments will be added to the mortgage to calculate the amount and, if you exceed that limit, the approval -of the bank- could be in risk.
Labour stability
Financial and labor stability is also important if you want your bank to borrow you a good amount of money. To prove you have a fixed and stable workplace, which is accompanied by a fixed and stable income, is key. Basically, because only by this way will the banks see you as a sufficiently solvent profile to lend you money for your mortgage. You must have an indefinite employment contract with at least 1 or 2 years of employment in the same company. In the event that you are self-employed, you must demonstrate that you have been at least between 2 and 3 years and obtaining benefits.
Online simulator
In addition, you also have the option of using some of the online simulators offered by the banks, and which are used to calculate the viability of the mortgage based on your income, your savings, and the price of housing and its location, among other factors. So, based on all that information, the smart calculator tells you whether or not you can really afford that mortgage.
Moreover, in Hipotecasplus we have our own simulator. This may help you to know everything you need regarding mortgage, and from an objective and reliable source. Thanks to that, you will be able to calculate the amount that you should pay on the mortgage based on your preferences and your personal information.
Always remember that, in Hipotecasplus, we can advise you during this process, as well as to help you to choose the amount, installments and type of mortgage that best suit your needs and characteristics.
What’s more, the online mortgage calculator will allow you to make a first assessment of your health mortgage. And, as you may already know, it is necessary to consider that everything influences the granting of a good mortgage!