This is a question that many people struggle with. It used to be easy: In most families the husband was employed and the wife could stay at home with the children. Many families could get a mortgage from the husband's income with which they could buy a house with a garden. However, times have changed. Single earners no longer always have to go to the bank if they have a house in mind and need a mortgage. You hear more and more that people continue to rent, simply because they cannot get a mortgage that meets 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 was recently divorced. The owner-occupied house where she lived with her ex and the children has been registered 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 independently buy a house for her and the children again. Bregje has a fixed gross annual income of US $ 26,000 and also receives partner and child support. In all, she has about 2000 US dollars to spend every month. She was told by her mortgage lender that she could receive a maximum of US $ 125,000 in mortgage based on her own income, excluding alimony.
Ultimately, in connection with this amount, Bregje had to choose a small apartment that is a bit further outside the city and she has taken out an interest-only mortgage for this. Because the alimony she received monthly was not included in the calculation, she settled close to the maximum possible amount of mortgage. Thanks in part to the alimony, she now still has enough money left over every month to do fun things for and with the children.
Hans is 28 years old and has studied for a long time. All this time he has lived with his parents and now that he has a good job, he would like to buy his own home with a mortgage. His gross monthly income is USD 42,000 per year. His student debt has been advanced by his parents and for the time being he does not have to pay for it.
Hans was told he could get a maximum mortgage of just over $ 190,000. This maximum amount of mortgage is not the same as the maximum purchase price and eventually Hans found an apartment of 169,000 US dollars, which is very close to the maximum purchase price. His mortgage is interest-only for 80 percent. 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 happy that he is building up something for later with this mortgage.
Know exactly how much mortgage you can get
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 home owner before? What is your age? Do you have any other current loans? All these matters weigh in what your options are for a mortgage.
If you want to know the maximum amount of mortgage you can get, first ask yourself what you want to spend per month. In general, of course, the higher the mortgage amount, the more you pay per month.
If you want to get an overview of all your options for a mortgage, ask an independent mortgage adviser 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 good idea of the maximum mortgage you can get; especially if you consult several. However, these results will never be as accurate as those presented to you by a mortgage adviser.