Determine the maximum credit rate
To find out how high the loan can be for your real estate financing, you should compare your monthly income and expenses. You can also add up the total savings for a year. From this surplus you can then calculate the surplus after the property purchase. Think about what additional expenses you might incur, such as insurance and taxes. You should also check which expenses are reduced or even eliminated altogether.
Tip: Many banks advise that the loan installment should not exceed 40 percent of net income.
When determining your maximum credit rate, make sure that it is sustainable for you in the long run. Also consider how having children could affect income and expenses and how long your reserves would last if you lost income.
Also think about when you want to be debt free. A debt-free property still costs money, but if you want to know whether you will still have enough funds for your own home when you retire, you have to do the math. Calculate when the loan is expected to be repaid, what costs could then be incurred and how many reserves will be available.
Tip: You can calculate around two percent of the value of the building fabric every year to maintain the value of a property. The building fabric is calculated from the property price minus the property value.