( AFP / PATRICK KOVARIK )
Whether it is 100,000, 200,000, 300,000 or 500,000 euros, the amount of a mortgage depends on income, but also on the duration and the borrowing rate, which has increased significantly since last year.
Among the first conditions of a loan, are the total income as well as the current monthly expenses – including the rent and the credits in progress. All these elements allow banks to study the debt ratio of their customers.
At the end of 2022, borrowing 100,000 euros required a monthly salary of nearly 2,067 euros
for a loan over 15 years, with a monthly payment of 682 euros, 1,652 euros for a loan over 20 years, with a monthly payment of 545 euros, and 1,419 euros for a loan over 25 years, with a monthly payment of 468 euros.
A loan of 200,000 euros required a salary of 4,094 euros for a loan over 15 years, with a monthly payment of 1,351 euros, 3,270 euros for a loan over 20 years, with a monthly payment of 1,079 euros, and 2,813 euros for a loan on 25 years, with a monthly payment of 928 euros.
To borrow 300,000 euros, a salary must amount to nearly 6,125 euros for a loan over 15 years, with a monthly payment of 2,021 euros, to 4,891 euros for a loan over 20 years, with a monthly payment of 1,614 euros, and to 4,204 euros euros for a loan over 25 years, with a monthly payment of 1,463 euros.
Finally, for a loan of 500,000 euros, you have to earn nearly 10,179 euros for a loan over 15 years, with a monthly payment of 3,359 euros, 8,131 euros for a loan over 20 years, with a monthly payment of 2,683 euros, and 6,985 euros for a credit over 25 years, with a monthly payment of 2,430 euros.
Borrowing rates higher than in 2021
Carried out in December 2022 on the Empruntis site (with non-negotiated average rates, i.e. 2.3% over 15 years, 2.4% over 20 years and 2.55% over 25 years and without contribution and with a rate of insurance of 0.36%), these simulations reveal an increase in rates since last year.
According to
the same simulations carried out in December 2021*
a loan of 200,000 euros a salary was to amount to nearly 3,537 euros at the end of 2021 for a loan over 15 years, with a monthly payment of 1,238 euros, to 2,782 euros for a loan over 20 years, with a monthly payment of 974 euros, and 2,345 euros for a loan over 25 years, with a monthly payment of 821 euros.
To borrow 300,000 euros, a salary had to be around 5,305 euros for a loan over 15 years, with a monthly payment of 1,857 euros, around 4,174 euros for a loan over 20 years, with a monthly payment of 1,461 euros, and around 3,514 euros for a credit over 25 years, with a monthly payment of 1,230 euros.
To borrow 500,000, you had to earn nearly 8,842 euros for a loan over 15 years, with a monthly payment of 3,095 euros, nearly 6,957 euros for a loan over 20 years, with a monthly payment of 2,435 euros, and almost 5,868 euros for a loan over 25 years, with a monthly payment of 2,054 euros.
Loans in progress can reduce borrowing capacity
One or more loans in progress can reduce the borrowing capacity.
The best solution is to repay them before applying.
mortgage, so as not to exceed the maximum debt ratio of 35%. To estimate its borrowing capacity, it is better to rely on one third of income.
Namely that
the income taken into account is the net income before taxation
, and also include rental income and certain bonuses, depending on their recurrence. On the other hand, social aid and pensions are not always part of the calculation.
“Some banks have changed the income they take into account towards a more favorable calculation for borrowers”, explains on
BFM TV
Sandrine Allonier, director of communications for real estate broker Vousfinancer.
“Thus, property income, collected and to be collected, are now retained at 90% of the amount of the rent instead of 70% previously and commissions, bonuses, variable part are retained at 90% of their average over 2 years (instead of 50%) if they are considered to be sustainable… This makes it easier to get into the nails and to stay below the 35% debt ratio bar”, she continues.
*Borrowing simulations carried out in December 2021 with non-negotiated average rates, i.e. 1.20% over 25 years, 1.05% over 20 years and 0.90% over 15 years, without contribution with an insurance rate of 0.30% and a debt ratio of 35%.