Becoming a homeowner... yes, but how much can you borrow?
Whether you've already identified your future purchase or you're considering a property purchase in the next few months, knowing how much you can borrow is vital to your plans.

Define my repayment capacity

First of all, you should define your repayment capacity by contacting your advisor or by using a simulator.

To get an idea of your borrowing capacity, the best-known rule is the 33% rule: a borrower should not spend more than one third of his or her monthly income on loan repayments (home loans and other credits, if applicable).

However, most professionals in the sector consider that this third can be exceeded if the balance of the budget is guaranteed. Indeed, if the amount left to the household after the repayment of the instalments is sufficient, the bank may allow a higher debt ratio.

In reality, each situation is unique and must be considered individually.

How much can I borrow?

Now, to calculate the amount to borrow and determine the overall budget, it is necessary to take into account all the costs related to your property project.
These costs can be multiple and of different natures: purchase or construction price, price of the land, price of possible renovations, without forgetting ancillary costs such as notary fees, mortgage fees, insurance, etc.

The amount of your personal contribution (e.g. proceeds from the sale of another property or savings) will be subtracted from this amount

Finally, the amount of the loan will also be determined by the rate and the term of the loan.
This step requires professional help, now it is time to contact a broker to calculate your loan and study your financing plan.