For many people, owning a home is a big dream. However, the average consumer does not have the amount that a house in the Netherlands costs in an old sock. Taking out a mortgage to pay for the purchase of a home is therefore the standard. But taking out a mortgage is quite a bit different than just getting half a piece of white from the bakery. This is because a mortgage involves a high amount and, moreover, a financial obligation that is entered into for a long time (30 years is customary). More information at vivrele.net
The amount of money that someone can get from a bank or mortgage provider depends on a large number of factors. To give you an idea of the possibilities, we are now going through a number of these factors.
One of the most important factors that determines the (maximum) amount of the mortgage is the income of the person applying for the mortgage. In general: the higher the income, the higher the mortgage that can be taken out. Yet a high income is not in itself decisive. A number of other factors play a role in calculating income. For example, the income of any partner with whom the house is purchased is looked at and a mortgage lender would also like to know whether a consumer has a (negative) BKR listing at the Credit Registration Office in Tiel. Loans that someone has outstanding and fixed costs such as partner alimony also have an influence on the maximum mortgage amount that can be obtained.
Possible study debt
An interesting point with regard to your financial position and the associated mortgage sum that you can get is your study debt, if any. Many students accrue a student loan during their studies. However, there is something special going on with this loan (because that is actually a study debt). In contrast to other loans, a study debt (at Deu) is not registered with the Credit Registration Office (BKR). A mortgage lender therefore has no possibility of finding out about your possible study debt. From a technical point of view, you can therefore choose not to report your study debt when applying for a mortgage or during a meeting that you have with a mortgage adviser.
If you do not state your study debt, you will usually be able to take out a higher mortgage than if you state the debt. However, the question is whether it is wise to conceal a student loan (apart from the moral side of the matter). You have to pay off a student loan and that therefore has an impact on your financial strength. So it is actually very sensible to bring up a study debt. This increases the chance that you will run into financial problems due to an accumulation of fixed costs. Moreover, a study debt is seen by most mortgage lenders as a lesser risk than a ‘normal’ loan (consumer credit).
Because a mortgage is entered into for a longer period, a mortgage lender would like that there is a certain degree of certainty in your monthly income. The simplest way to prove that this certainty exists is proof that you have a permanent contract with your employer. Your wage is then guaranteed.
Mortgage as a freelancer
Anyone who is self-employed (self-employed without personnel) cannot of course show an employment contract with his employer. Nowadays, however, it is still possible in many cases to take out a mortgage as a self-employed person. For self-employed people it is advisable to schedule a consultation with a mortgage adviser to discuss the options.