How to calculate your real estate borrowing capacity
The advantage with real estate credit is that it allows you to build up assets without having to save money. However, as this is a colossal amount of cash, subscribing to it is not without risk to your financial health. If you particularly want to contract this type of credit, it is better to first assess your borrowing capacity.
There are simulators on the net specifically dedicated to calculating borrowing capacity. The tools in question are completely free and easy to use. To use it, you will need to provide some data. These firstly include your monthly income in addition to your fixed monthly charges. However, you can simplify things if you know your debt ratio. In principle, the latter should in no case exceed 33% if you want to obtain a mortgage.
Note that your repayment capacity can vary greatly depending on certain parameters, including the amount of personal contribution. It will also vary depending on the type of loan, your age or state of health. To this are added the monthly payments, the credit period and your debt ratio. Hence the interest in carrying out a mortgage loan simulation. In addition, when you apply for this type of loan, do not forget to take into account the administrative costs. The amount of these can amount to a few thousand us dollars.