How much Mortgage can I takeWhat mortgage can I take?
What mortgage can I buy?
If you are a first shopper looking for the ideal home for a start, or an experienced professional dealing up to your dreams home on the water, you are probably asking the same questions: Could I have that? In order to get a more precise idea of what you can afford, you should analyse three things: you and your co-debtor's incomes, your household budgets and your life saving.
Do you feel that your fee structures and your earnings are steady? Are you expecting your and your co-borrower's incomes to rise or at least remain the same? You know if your wages and your budgets will shift after the baby's birth? One of you will remain at home to take good charge of the child (which can lower your month's salary)?
It is very important to know not only how much you make, but also how much you are spending per months. Low mortgage interest rate, a mortgage payout and the extra money that comes with having a house could even cut your pocket. Explain how much you currently pay for the following categories: car and transport, utility and billing, educational, recreational, food and drink, gift and donation, healthcare and physical condition, home, children, body hygiene, pet, shopping, tax, travelling and other various types of spending each month. Your spending will include
What's your mortgage balance? Typically, a general principle is that you should not invest more than 36% of your earnings toward debt (mortgage payment, auto payment, and plastic cards ), 31% toward tax, and then have 33% for everything else (including saving or investment).
Obviously, you may also need to consider other determinants such as the mean local standard of living, the mean home price and your immediate need for more or different accommodation. You' re likely to need a substantial down pay to buy a new home (most likely 3.5 per cent or more; 20 per cent less is the most common).
Think you' ll have enough cash for the necessary down payments, closure charges and new mortgage payments? Do you have enough cash, either in your life saving or in your month to buy discount goods? Have you enough cash to save in an accident, such as an accident or a faulty boiler?
It' s important not to rob your entire life saving when buying a new home. Generally, you should plan 1 to 3 per cent of your home repair and maintanance budgets. In order to find out how much home you can buy, use our home economics calculator. Here you can find out how much you can buy. Make the first move and get pre-qualified by a creditor.