How much can I borrow? This is one of the most frequently asked questions when faced with a major investment – whether it be a mortgage loan, a new car loan or just a consumer loan.
Everything After whom you ask, you get very different answers to how much you can borrow. Therefore, you should have investigated things yourself and formed a picture of your monthly expenses, revenue, and thus the availability you have. For the cost of a loan must be taken from the available amount, therefore it is important that there is room in the economy to pay the fixed installments on your loan – It is basically what determines how much you can borrow.
Start by putting a budget
If you have not previously made a budget, it would be a sensible time to do so if you face a bigger investment, whether it be real estate or other loans that give you a fixed monthly expense for many years to come . It is hard to sit too hard.
You can see more about budget for personal finance here – Remember that it is important to be realistic when you put your private budget
When you have your budget, you can see how much you have available each month – The so-called disposable amount. It is the money that you can spend for what you want – when the overhead is paid.
Most banks, savings banks and mortgage banks have some recommended disposable amounts – ie some rules of thumb for how much a person, a couple or a family should have available each month.
Often these sums of money are pretty much controlling how much you can borrow in a bank. If a bank thinks that a family should have a disposable amount of DKK 13,000, then you can often find it difficult to borrow in the bank in question if your family’s available amount is less than SEK 13,000 – Even though you can easily cope with less. At that point, the banks are quite rigid.
How much the individual banks require at their disposal varies a great deal – therefore you need to contact your bank if you want to know how much they require at their disposal.
If you have specific examples of required disposable amounts in different banks, please write a comment in the field at the bottom of the page.
Mortgages – So much you can borrow.
If you are faced with having to buy a house or apartment, then it is important how the purchase is financed when you ask the question “How much can I borrow”. The cheapest loan form you can get is mortgage loans – Here you can now get fixed-rate loans with an interest rate of 3%. However, you cannot finance the entire house purchase with mortgage loans. See how the loan amounts are typically distributed:
- Mortgage loans: 80%
- Bank loans or savings: 20%
As you can see, you have to set yourself the 20% of the purchase price. Then the house costs 1,500,000, you can get a mortgage loan of 80% of the 1,500,000, ie 1,200,000. The remaining SEK 300,000 can then either take out a bank loan, or possibly. save up.
Be realistic with disposable amounts
When faced with a larger loan, you make yourself a huge disservice by assuming a lesser amount of money than you really need. It is easy to say that “we can only live on oatmeal for 3 years” if you actually live off red steaks and champagne – If the budget for the dream house requires that you live on oatmeal. Therefore, you must be completely honest when you count on disposable amounts, and seek the answer to how much can I borrow.