How to choose a loan according to your financial capabilities?

The choice of mortgage is dictated, among other things, by your financial capabilities. Learn how to choose the right loan amount for clarification

Buying a home or apartment on credit is a task that requires careful thought, planning and detailed budget analysis. If you want to go through this process fairly calmly, before you look for a specific offer, check how much the bank can give you credit for.


Can I afford a mortgage?

Can I afford a mortgage?

The answer to the above question is important for two reasons. First, a mortgage is a liability often for the next 20-30 years. Secondly, credit installments significantly affect your household budget. Depending on the size of the property, they can be from several hundred to even several thousand zlotys per month. Can your budget withstand it?


How do you calculate your repayment mortgage?

How do you calculate your repayment mortgage?

The vast majority of clients taking a mortgage can be assigned to one of the following three groups. Depending on which group you are in, you can check how to adjust the cost of the loan to your options.

  • You are on the threshold of your career, you live with your parents

If you have a permanent job and live with your parents, the most important point in choosing the size of your mortgage is to analyze your expenses. If you spend everything you earn, you should think about what you are able to give up in order to be able to pay another installment every month. The amount saved in this way will show you what credit you can afford.

  • You are on the threshold of your career, you rent a flat

Being in this group you have a slightly easier task. When renting an apartment, you pay certain costs every month. If you are able to support yourself and put aside money for a rainy day, you have the ability to take out a loan with an installment of the monthly rent.

  • You already own other real estate

Being in this group is easiest. By already owning your own real estate, you probably move well in the financial markets, know what you want and count on subsequent installments. Their amount, and consequently the amount of the entire loan, is determined by free funds that you are able to allocate for this purpose every month.

Analyzing the budget and determining the monthly amount you are able to pay for the mortgage installment is the best way to know your financial capabilities and maximum loan size. Comparison of the results of this simulation with the real estate market rates in your area will show exactly which one you can afford.

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