2. What about your finances?

The amount you need to borrow to buy your home is of secondary importance to the bank. But at this stage, the price you pay for the property is only a secondary consideration for the bank. More important for the bank is what security is available for the loan. For this reason, the bank usually bases its lending decision on the mortgage lending value. This is the amount for which the property could most likely be sold during the whole term of the loan. How this figure is calculated depends on many factors. For example, location and size play a role, but the condition of the property is also a key factor. So ideally you should bring plans (or floor plans) and photos of the property to your meeting with the bank.
Equity is also a significant factor for the bank.

This is because: the more solvent the borrower, the lower the risk to the bank. However, the most important thing for the bank is your monthly income – after all, this is how you will repay the loan.

It is important that you keep enough for your living expenses after deducting the loan repayment. A lot can happen during the term of your property loan, so always plan for some leeway. That’s why we, as a bank, are also very careful when calculating the loan amount and repayments.

Home loan interview: prepare well

First real estate purchase or investment?