{"id":7060,"date":"2024-03-22T06:32:55","date_gmt":"2024-03-22T04:32:55","guid":{"rendered":"https:\/\/www.appartement.be\/mortgage-loan-calculation-2024\/"},"modified":"2024-03-22T06:32:55","modified_gmt":"2024-03-22T04:32:55","slug":"mortgage-loan-calculation-2024","status":"publish","type":"post","link":"https:\/\/www.appartement.be\/en\/mortgage-loan-calculation-2024\/","title":{"rendered":"Mortgage loan calculation (2024)"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">Are you wondering what home you can buy? What part of your budget goes toward the purchase of your home? What part will go toward additional costs (such as registration fees)? This article will tell you.     <\/span><\/i><\/p>\n<p><b>Disclaimer<\/b><span style=\"font-weight: 400;\">: This article is based on a March 2024 calculation. The amounts below have been adjusted to make the calculation simple. <\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Step 1: What is your total net income?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Calculating your mortgage loan starts with calculating your total net income. This includes: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your net income per month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your additional net benefits<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Meal vouchers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Eco vouchers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Bonus<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">&#8230;<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your partner&#8217;s net income per month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">His\/her additional net benefits<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b><i>Fictitious example:<\/i><\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Partner&#8217;s income: 2,400 euros + 100 euros bonus = 2,500 euros<\/span><\/i><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Income from you: 2,350 + 150 euros meal vouchers = 2,500 euros<\/span><\/i><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">Then the total income is: 5,000 euros.<\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">Step 2: Do you have current credit?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Indicate whether you have current credit and the amount of that credit. In this case, we assume you don&#8217;t have it, because in a lot of cases then you won&#8217;t get a mortgage loan. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do you have current credit? If so, contact your bank or credit broker. <\/span><\/p>\n<p><b><i>Example:<\/i><\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">Neither has current credit.<\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">Step 3: How much do you want to pay off per month?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Most banks allow you to <\/span><b>a maximum of 40%<\/b><span style=\"font-weight: 400;\">  of your total net income per month to pay off your mortgage. This is a fairly high proportion of your income. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose your partner or you fall ill for a long time or are laid off from work due to impotence (for example, due to a new Corona outbreak). Then half of your income simply falls away. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, it is <\/span><b>ideal<\/b><span style=\"font-weight: 400;\"> to <\/span><b>33%<\/b><span style=\"font-weight: 400;\"> (or less) of your net income as repayment for your house or apartment.<\/span><\/p>\n<p><b><i>Example:<\/i><\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">33% of 5,000 euros is: 1,650 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Ideally, you will repay 1,650 euros monthly.<\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">Step 4: How much can I borrow?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Simulate how much you can borrow with the monthly repayment you just calculated.<\/span><\/p>\n<p><b>Tip<\/b><span style=\"font-weight: 400;\">: In March 2024, one takes into account an <\/span><b>interest rate of 3.5%<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Determine your term<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Choose the total term of your mortgage loan. For young individuals, 25 years is recommended, while for older people it often slides more toward 20 years. The longer you borrow, the more you can borrow. But the longer you borrow, the more it will also cost you.   <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Use a <\/span><a href=\"https:\/\/www.spaargids.be\/sparen\/simulatie-woonlening.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">simulation tool like the one on savingsguide.com<\/span><\/a><span style=\"font-weight: 400;\"> and do the following:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choose formula: fixed interest rate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Select annual interest rate: 3.5%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choose term: 25 years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set the amount around 300,000 euros.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">On the right, see how much your monthly repayment is according to the simulation. Adjust the amount in the tool and recalculate it so you get as close as possible to (but below) your monthly repayment amount. <\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Then use the same method, but calculate this for a 20-year term.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then decide what amount is sufficient to borrow a home with.<\/span><\/p>\n<p><b><i>Example:<\/i><\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">In the simulation, your monthly repayment is now at 1,493 euros, while 1,650 euros also feels comfortable for you. Increase the amount on the left column until you get as close as possible to 1,650 euros. <\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Then you end up with this:<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">For a <\/span><\/i><b><i>term of 25 years<\/i><\/b><i><span style=\"font-weight: 400;\">, you can borrow an amount of 330,000 euros at 3.5% interest. In this case, you will repay 1,642.35 euros monthly. <\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Do the same for a 20-year term.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">For a <\/span><\/i><b><i>term of 20 years<\/i><\/b><i><span style=\"font-weight: 400;\">, you can borrow an amount of 285,000 euros at 3.5% interest. In this case, you will repay 1,644.85 euros monthly. <\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">In this case, choose between these two amounts: what will you get by with? Does it feel doable? <\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">Step 5: How much savings do you have?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">See how much savings you have. Can you possibly borrow or get an amount from your parents or family? This obviously increases your budget.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Or just how much do you want to use as a buffer for contingencies and expenses? Or for furniture and the move itself? This you keep off your budget.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Calculate your investment budget this way.<\/span><\/p>\n<p><b><i>Example:<\/i><\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">The total savings of you and your partner is 100,000 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Your parents put away an amount of 30,000 euros for you and give it to you so that you can buy your first home.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">But you definitely want to leave 20,000 euros as a buffer that covers unforeseen expenses.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">And ideally also 10,000 euros for furniture you will buy after purchase.<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">Then you calculate: 100,000 + 30,000 &#8211; 20,000 &#8211; 10,000 = 100,000 euros<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">In this case, your investment budget is: 100,000 euros.<\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">Step 6: What is your total budget?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Do the sum. Add your loan amount to your investment budget. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Normally you then have 2 situations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Situation 1: Loan amount for a 25-year term + investment budget.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Situation 2: Loan amount for a 20-year term + investment budget.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b><i>Example:<\/i><\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">Situation 1: 330,000 + 100,000 = 430,000 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">With a 25-year mortgage loan at 3.5% interest, you have a total budget of 430,000 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Situation 2: 285,000 + 100,000 = 385,000 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">With a 20-year mortgage loan at 3.5% interest, you have a total budget of 385,000 euros.<\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">Step 7: How much should the property cost?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The final step of calculating your mortgage loan is one in which you face reality. Buying a home costs money. In this step, you calculate this extra cost.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In our article <\/span><a href=\"https:\/\/appartement.be\/kosten-aankoop-huis-of-appartement\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">All costs when buying a house or apartment<\/span><\/a><span style=\"font-weight: 400;\">  you will find an overview of all costs. Below is the simplified calculation (with estimated costs for March 2024): <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registration fee: 3% for a first home (in which someone has lived for at least 2 years) or 12% for a new home.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">VAT: 21% for a new home.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purchase deed: about 4,800 euros.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit deed: about 6,500 euros.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">File costs: about 350 euros.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Estimation cost (not always): about 250 euros.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Estimation costs are not always applicable, but include them in a simulation for safety.<\/span><\/p>\n<p><b><i>Example:<\/i><\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">Situation 1: 430,000 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Additional cost: 4,800 + 6,500 + 350 + 250 = 11,900 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Acquisition cost: 405,000 euros<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Registration fees (3%): 12,150 euros<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">With a 25-year mortgage loan at 3.5% interest, you need a total of 429,050 euros (= 11,900 + 405,000 + 12,150).<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">With which you can buy a property with purchase price 405,000 euros.<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">Situation 2: 385,000 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Additional cost: 4,800 + 6,500 + 350 + 250 = 11,900 euros.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Acquisition cost: 360,000 euros<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Registration fees (3%): 10,800 euros<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">With a 20-year mortgage loan at 3.5% interest, you need a total of 382,700 euros (= 11,900 + 360,000 + 10,800).<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">With which you can buy a property with purchase price 360,000 euros.<\/span><\/i><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-3510\" src=\"https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/03\/Hypothecaire-lening-berekenen-met-rekenmachine-1024x576.png\" alt=\"Mortgage loan calculation with calculator\" width=\"800\" height=\"450\" srcset=\"https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/03\/Hypothecaire-lening-berekenen-met-rekenmachine-1024x576.png 1024w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/03\/Hypothecaire-lening-berekenen-met-rekenmachine-300x169.png 300w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/03\/Hypothecaire-lening-berekenen-met-rekenmachine-768x432.png 768w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/03\/Hypothecaire-lening-berekenen-met-rekenmachine-1536x864.png 1536w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/03\/Hypothecaire-lening-berekenen-met-rekenmachine.png 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Related articles:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.appartement.be\/documenten-aanvraag-woonlening\/\"><span style=\"font-weight: 400;\">What documents do you need when applying for a home loan?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.appartement.be\/hypothecaire-lening\/\"><span style=\"font-weight: 400;\">Getting a mortgage loan in 6 steps<\/span><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Are you wondering what home you can buy? What part of your budget goes toward the purchase of your home? What part will go toward additional costs (such as registration fees)? This article will tell you. Disclaimer: This article is based on a March 2024 calculation. The amounts below have been adjusted to make the [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":5984,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1120],"tags":[1121,1318,1317,1319,2606,2478,2605],"class_list":["post-7060","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy","tag-buy","tag-buy-apartment","tag-buy-house","tag-buy-house-en","tag-mortgage-calculation","tag-mortgage-loan","tag-mortgage-loan-calculation"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/posts\/7060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/comments?post=7060"}],"version-history":[{"count":0,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/posts\/7060\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/media\/5984"}],"wp:attachment":[{"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/media?parent=7060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/categories?post=7060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/tags?post=7060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}