Calculate maximum mortgage
Those looking for a house to buy will first have to ask themselves what the financial possibilities are. Various factors play a role in applying for a mortgage. Income, personal situation, possible debts and the like, influence the amount of the mortgage loan that can be obtained. With the required data, it is fairly easy to calculate what your maximum mortgage could be. You can then immediately see what your monthly payments are and whether you can actually pay for the house of your dreams.
Calculate your maximum mortgage yourself
You can calculate your maximum mortgage yourself on the internet with the various mortgage providers. By entering a number of personal details (such as your gross annual income, the costs of your other loans, any alimony and whether you want to buy the house alone or with a partner) you can quickly get an idea of the amount that you can borrow. Just keep in mind that this is an indication and that the real maximum will only be communicated to you in a quote. Indeed, there are several things that can play a role in the granting of a mortgage.
Until a few years ago it was possible to take out a mortgage loan for an amount that was higher than the actual value of the home. That way you could borrow extra money for the additional costs, such as the transfer tax and appraisal costs, but also for a possible renovation. For a number of years, the limits have been set and the maximum amount to be borrowed has been adjusted downwards. In 2016, you may borrow a maximum of 102% of the appraisal value of the home. That is too little to be able to finance the costs of the buyer. Moreover, this percentage is also reduced by 1% per year until 2018, so that you can borrow a maximum of 100% of the purchase price in 2018.
The maximum financing of 102% (and 100% from 2018) does not apply to all cases. There are certain exceptions where it is still possible to take out a mortgage for a higher amount. This is the case, for example, if you want to co-finance a residual debt from a previous home or if your income does not give you such a high mortgage. In addition, there is another exception to the maximum financing, namely when purchasing a sustainable home.
Co-finance residual debt when purchasing a new home
It can of course happen that the property you sell yields less than the mortgage you took out for it. In such a case we speak of a residual debt. To be able to pay off that residual debt, it is possible to co-finance this in the mortgage of your new home. There are, however, conditions with regard to the residual debt and the new mortgage may exceed the market value of the home by a maximum of 15%. In addition, the residual debt must be repaid in a shorter period than the rest of the mortgage.
Extra financing is possible for sustainable homes
In the event that you want to buy a house that is economical in energy consumption, or when you have an eye for a house that generates energy itself, it is possible to borrow more than the maximum mortgage amount. When purchasing an energy-efficient home, that is a home that is classified with label A or higher, you can borrow up to an additional 9000 euros. If you buy an energy-neutral house, a so-called zero-meter meter, the amount that you can borrow on top of the maximum mortgage can amount to as much as 25,000 euros. In both cases, you must have at least 32,000 euros in income.
National Mortgage Guarantee (NHG)
The National Mortgage Guarantee is an initiative of Stichting Waarborgfonds Eigen Woningen. With the National Mortgage Guarantee, the risks of purchasing your own owner-occupied home are limited for the owner. If, due to circumstances such as divorce or losing your job, you are no longer able to pay your mortgage and have to sell your house, the NHG can ensure that you are not left with a residual debt. To be eligible for the National Mortgage Guarantee you must meet a number of conditions.
Conditions for the National Mortgage Guarantee
The conditions for taking out a mortgage with a National Mortgage Guarantee are described in the Terms & Conditions, which have been drawn up by the Stichting Waarborgfonds Eigen Woningen. These rules are adjusted every 6 months, so that they are always up to date with political wishes and decisions. When you have requested a quote, the date stated on the quote is leading for the conditions that you must meet.
Secure buying and maximum financing
The maximum financing percentage has been introduced to prevent people from buying a house with a high mortgage burden, which could lead to problems in financially difficult times. This percentage will cover 100% of the market value of the home in 2018. Because with the current rules regarding taking out a maximum mortgage it is no longer possible to co-finance the costs of the buyer, it is necessary to have your own money in hand for these types of costs. The principle of safe purchasing is therefore that you borrow wisely and have sufficient buffer to cope with temporary setbacks without jeopardizing the payment of your mortgage costs.
Maximum mortgage for renovations
If you plan to renovate or renovate your new home immediately after purchase, the appraiser can already include the value of the property after the work has been carried out in the appraisal report. Because the valuation report determines the market value of your house and this value partly determines the amount of your mortgage, you can then borrow more than your house is worth at that time. Good to know and important to put your plans clearly on paper in advance.