How much house and loan can I afford?

My monthly income and my spouse’s combined monthly income is 100,000 yuan. What is the maximum amount of house we can afford?

How much house and loan can I afford

Indeed, when buying a house now, most people hesitate to move forward because of the high housing prices.

However, if you want to buy a house, you don’t just look at the price level, but first, evaluate your ability to afford loans.

If we are calm and unaffected by the eye-popping high housing prices, use the following tips to calculate how much of a house we are able to buy, how much of our own funds, and how much ability to pay a loan, and set a goal for buying a house. More practical.

to calculate the monthly salary affordable lending capacity

is generally recommended monthly salary to pay the loan amount should not exceed 3 percent, due to higher prices in Taiwan, as can be relaxed to 3.5 to 4 percent.

The main reason is that the mortgage interest rate is variable. If the interest rate rises, the monthly loan burden will increase. Therefore, the loan amount should be controlled below 3.5 to 40% of the monthly salary, and some buffer space for interest rate increase can be reserved.

For example, for a single worker with a monthly salary of 50K, the monthly mortgage loan amount cannot exceed 17,500 yuan. If the monthly income of a double-paid family is 100,000 yuan, the monthly mortgage loan amount cannot exceed 35,000 to 40,000 yuan. The monthly income is 80,000 yuan. The monthly mortgage amount cannot exceed RMB 28,000 to RMB 32,000.

In addition, many banks review the financial resources of the average worker will be deducted from the amount of expenses necessary for life as follows:

Your monthly payment loans this gold <monthly income - monthly payment of other liabilities gold - life must spend

As for the “necessities of life expenses,” Standard Bank Approximately = 15,000~20,000

<Determination 2> Monthly lending capacity estimated the total amount of loans

based on the loan amount monthly burden estimate, if a loan of 300 million, 20-year average amortization of principal and interest, the interest rate level of 3%, the monthly mortgage burden is 16,638 yuan, more in line with Affordability of a single family with a monthly salary of 50,000 yuan.

If it is a small family that can afford a monthly mortgage of between 28,000 yuan and 35,000 yuan, the total amount of loans available is about 5 million and 6.5 million yuan.

However, the current high housing prices in Taiwan, coupled with the low salary level of salaries, therefore, under the premise of unchanged interest rates, if the loan period is extended to 30 years, the loan amount can be increased. For example, a monthly mortgage of 16,000 yuan can be used for a loan of 4 million yuan, a monthly mortgage of 28,000 to 35,000 yuan, and a loan of 6.5 million to 8 million yuan.

loan amount plus-owned funds, for the total homebuyers

currently have for several banks into lending more restrictions, the first ethnic purchase loans can be up to 80%, generally about 60%, about 70%, so if you want to buy For a house of 10 million yuan, the self-provided fund needs about 2 million yuan or more.

After a simple trial calculation, office workers should have a better idea of ​​the total price of the house that can be purchased.

However, before buying the house, but also pay more attention to two points:

the difference 1. loans and rent burden

is generally recommended a 20-year mortgage period mainly because of 30 to 40 years and interest burden of loans given more weight. However, because of the high housing prices, the number of houses in Shuangbei City that is currently under 10 million is becoming more and more limited.

In order to increase the ability to buy a house, you may wish to compare the difference between the monthly payment of a 30-year mortgage and the rent paid. If the difference between the two is not very large (for example, within 10,000 yuan), the purchaser can have real assets instead, which is only pure Expenses are more cost-effective, and they are an assessment point that office workers can flexibly consider.

2. The affordability of rising interest rates

before the interview is with a 3% interest rate estimates, there may be an initial purchase interest rate of less than 3%, but only short-term benefits, no longer apply. At present, the world’s most worrying thing is the exit of QE in the United States, and the risk of subsequent interest rate rises. Therefore, before buying a house, it is necessary to evaluate the burden that may increase when interest rates rise.

For example, a loan of 5 million yuan, a 1% increase in interest rate, will have to pay an extra 2500 yuan per month. Office workers who want to buy a house may wish to do the calculations by themselves. How much house can you buy?

(The text part quotes Good House News / Lin Qifen / 50K monthly salary, how much can you afford a house?)