We can not forget to calculate the debt capacity
When we are going to ask for any type of loan, we can not forget to calculate the debt capacity, that is, how much money we can afford to pay. Each individual, according to their calculations, can measure what their capacity of bank debt is, but it will be the financial institution that decides how much money can be lent to a certain user so as not to endanger his bank.
Normally, the debt capacity ratio established by financial entities and private companies is between 35 and 40% of the monthly income received by the client.
HOW IS THE DEBT CAPACITY CALCULATED?
To calculate debt capacity, we must first know what our monthly income is and from there, subtract the fixed expenses (water, electricity, transport, rent, etc.). The 35% of the capital that remains available to us by subtracting these fixed expenses, will be what we can destine to contract a debt. The capacity of indebtedness is something that the user can choose, that is, it will be the banking entity that determines what amount they will allow us to request. However, this recommended debt capacity and its percentage may vary depending on the income and the family or personal responsibilities of the client.
CAPACITY OF INDEBTEDNESS TO CONTRACT A MORTGAGE
The reality is that, to acquire a mortgage, most Spaniards must get into debt, but what value should our mortgage have?
First of all, we must know our debt capacity by doing the calculations mentioned above. That is, what part of your salary can you use to pay for your home? Of 100% of the monthly salary, only 35% must be your debt to contract to pay the mortgage. And at least the remaining 65% must be available for the basic needs of each individual.
Next, we will see an example to know what would be the capacity of indebtedness to contract a mortgage.
If you charge 1000 euros, you could afford to buy a house for 125,000 euros. This is because around 35% of your salary is what you would use to pay your mortgage (about 350 euros per month).