The borrower’s borrowing capacity corresponds to the amount that he can devote each month to the repayment of his loan, taking into account his income (wages, retirement pensions, property income, interest on financial investments, etc.). It may be necessary to add monthly payments related to other outstanding debts.
But the bank also considers the rest to live, which represents the sum available to the household once the current fixed expenses deducted: food, electricity, transport, telephone, taxes … If it is not enough to cover these incompressible charges, the loan is refused. The minimum is determined by the place of residence (because of the cost of living) and the composition of the home.
To hope for a positive response from the banks, you need to build a solid case, whether you’re doing it alone or through a broker. This file is made up of several supporting documents of which you are revealed the essential. A detailed explanation of your project This is an explanatory note in which you…READ MORE
The lifestyle of the future borrower is also considered to determine his “remainder to live” once he has paid the charges and monthly payments of the loan . The lenders are particularly attentive to the debt ratio, all credits combined not to exceed 33% of revenues. The amount of a mortgage loan depends primarily on…READ MORE
While mortgage loans granted today by banks are based on 20 years around 3.10% for fixed and 2.30% for variable rate loans, what to choose 1 ? The rate is an important element in a mortgage. It is essential to understand the mechanism of a fixed rate and variable rate loan offer, as well as…READ MORE