If you are going to borrow money to buy a home, whether it is a house, apartment or something else, an income will be required. The question then is how big this income must be for the lenders to approve lending money?
Unfortunately, there is no simple answer to this question as it is very dependent on how much money needs to be borrowed. It goes without saying that anyone who wants to get a mortgage of 3 million needs to have a better income than someone who has only intended to borrow half a million. The interest rate for a loan of USD 3 million would be USD 12,500 a month before deduction if the interest rate is 5%.
For the loan of half a million, the corresponding sum would be about USD 2,100 a month.
It is also not only the income that affects the possible size of the mortgage, but most of what has to do with your own finances can affect the terms of your loan. Then we talk not only about obvious things like payment notes but for example how much money is saved, existing debts and the like.
If you want a better idea of what you can possibly borrow, the best tip is to visit the big banks’ websites.
There it is not uncommon for there to be quick forms that you can fill in which give an estimate of the possible size of the mortgage.
You can also read on various forums where individuals discuss this topic and what they themselves have received for loans and what income they have, etc. However, there is always a risk of relying too much on such forums because it is about individual cases and there is always some uncertainty. Such numbers can be inaccurate and, above all, they may not match what you can get when you borrow.
However, if you choose to do a quick check with a bank or lender, you may not be able to borrow as much as the first check says.
If you decide to go ahead and take out a loan promise, you can get a slightly better picture as you do a more thorough credit check at this time. Then you get a slightly better answer to this question. However, a loan promise only applies for a specific period and if you wait longer than that, it is conceivable that your finances have changed and that you can then only borrow less.