Translation of an article written and signed in French by Sandy MASCART, for information. Only the French version is authoritative. Read the French page
Topics
Borrowing capacity, income and budget
Borrowing capacity, income and budget. Articles on this topic, most recent first.
12 articles.
All articles on this topic
Most recent first.
- Calculating the monthly repayment on a mortgage: the formula in six steps, and its blind spots Calculate the monthly repayment on your mortgage in six steps, then see what the formula omits: insurance, guarantee, fees, APR and usury.
- Borrowing as a couple: the true calculation of your joint borrowing capacity, and how to protect each partner Borrowing as a couple: what the bank actually adds up, what it examines next, and how to protect an unequal contribution in the deed.
- How much can I borrow with €2,000 per month? With €2,000 in monthly income: a step-by-step calculation of your borrowing capacity, the bank’s three constraints and five levers to increase it.
- How much can I borrow alone with €2,500 per month? Alone with €2,500 of income per month: what determines your borrowing capacity, the constraint that decides, and where to find room if the calculation stalls.
- What term should you choose for your mortgage: fifteen years, twenty years, or longer? Paying the least interest without strangling your budget: what each term changes, how far the lender can extend it, and the method for choosing.
- Financing a second home: what the bank counts, and what it does not The same debt-to-income limit, no rental income offset, no subsidised loan: what the bank counts for a second home, and the documents to prepare first.
- What salary do you need to borrow €200,000 in Lyon? What salary to borrow €200,000: calculating the minimum income, and why disposable income, term and insurance can weigh as heavily as the cap.
- What salary do you need to borrow €300,000 in Lyon? The income you require, calculated from the loan amount, including the full cost of the transaction — notary, guarantee, fees — that no one counts.
- Marital regime and borrowing: who signs, who is bound, and what the bank requires Community of property, separation of property, PACS: how your regime affects the loan. Who signs, which assets secure the debt, and which documents to provide.
- Net take-home, net payable, gross: which income does the bank actually use? Net payable, gross, taxable, bonuses, dividends, rents: what the bank actually uses to calculate your borrowing capacity, before you start house-hunting.
- Bonuses, commissions, variable pay: how do you get the bank to count them? A bonus or a commission counts if it is written down, regular and proven over several years. The documents to gather and the table to prepare.
- I have a car loan or a car lease with purchase option running: should I pay it off before buying? Paying off a car loan or a lease with purchase option frees up capacity but eats into the deposit. How to weigh it up, and when to pay off nothing.
Your loan and your purchase
- You have a ten-day reflection period on the loan offer.
- The sale is conditional on the loan being obtained.
- If the loan is not obtained, the sums you paid the seller are refunded to you.
Mandatory legal information, in French:
L’emprunteur dispose d’un délai de réflexion de dix jours ; la vente est subordonnée à l’obtention du prêt ; si le prêt n’est pas obtenu, le vendeur doit rembourser les sommes versées.