Today more and more people want to buy their own house. In most cases it is not the case that you have a savings account with the full purchase amount for a house, unless of course you have just won a grand prize in the lottery. For most people it means that buying a house is only possible with a mortgage.
Now it is not that you can just pick out a house that suits you without paying too much attention to the purchase price. You most likely have to finance a house with a mortgage and how much you can get from a bank as a maximum mortgage depends on your personal circumstances.
Calculation of your maximum mortgage
For example, the bank will look at your income and possibly that of your partner. You will have to show employment contracts and contracts, as well as a statement from your employer that you are in a permanent employment contract and that you are able to pay the costs associated with a mortgage.
If you are married, the income of your partner will also be included in this calculation of your mortgage. In this situation, a number of issues are considered. Do you already have children? In that case, your partner may not work full-time. A partner’s part-time income is therefore assumed.
Income when calculating the mortgage
If your partner is still working full-time and there are no children yet, but if they are on the way, your partner’s income may only be taken into account in the calculation of the maximum amount that you can take out as a mortgage; your maximum mortgage.
Once the bank has determined this overview together with you, you can look at an owner-occupied home. In this case you do not always have to choose a house that you can pay up to. It is always wise to stay below this maximum amount. After all, a top mortgage leaves little margin for you and your partner if there are once personal circumstances that result in a loss of income.
Such a top mortgage also ensures that there is little left over in reserves after the monthly mortgage payments have been paid. The question that you have to ask yourself in such a case is whether it is worth it for you that all your money goes to your house and that there is nothing left for a nice extra for you and your family.
Points to consider when taking out a mortgage
If you see a house that is above the maximum mortgage but for which you and your partner want to go all the way, you can always enter into negotiations with the selling party of a house. Perhaps the house has been for sale for a long time and the old owner wants to get rid of it. In that case it could just be that you can buy the house below the asking price. In that case, look at the quotation that comes with a purchase price.
If the cost of a house is marked with the abbreviation ‘kk’, this means that the additional costs associated with the purchase of a house are for your account. KK stands for buyer costs. In that case, you should not already be equal to your maximum mortgage with the purchase price of your home. After all, there are additional costs that are required to pay for the purchase of your home and the preparation and signing of the mortgage contracts.
Factors for maximum mortgage
The maximum amount you can borrow as a mortgage naturally depends on a number of things. This is how you first look at your incomes. If one of you is a self-employed person, then the company details of the past 5 years must be put on the table before a proper assessment can be made.
In addition, we look at the amount that you have spent on fixed costs. Are there subscriptions that are running and to which you are bound; are debts still being repaid to which you are still attached for a while; these are all things that determine how much you can pay as mortgage costs.
When you buy a house that needs quite a bit of work before it is to your liking, do well to see if it is possible to finance the renovation in the mortgage. In many cases you can co-finance up to a limited amount on top of the purchase price of your mortgage. This is based on the market value of the property that you want to buy.
- The market value of the home can consist of the selling price of the home.
- However, it can also be a sum of the purchase / contract sum in the case of a new-build home, plus the price of the land, the costs of construction, the costs of additional work, costs of construction interest and the connection of utilities such as electricity.
- There may also be a valued value of a house, possibly after a renovation has been included.
You can take a maximum of 101 percent of the market value as a maximum mortgage. Having many luxury items added while you were already on the maximum mortgage in terms of costs is therefore not possible. In that case you will have to postpone the renovation or pay for it in another way.
The only extra things that you can still have installed when buying a house are, for example, energy-saving measures such as roof insulation or double glazing. In that case you may take out 106 percent of the market value of a house as a maximum mortgage.