How much can I ask for a mortgage?

The amount you can request for a mortgage varies and depends on several fundamental criteria. Credit institutions take into account the following factors when determining the amount they can lend you:

• Your income and job stability: Banks examine how much you earn per year and the firmness of your employment situation to confirm whether you can afford the mortgage payments each month. Normally, it is preferable that the mortgage payment does not exceed 28-30% of your total monthly pre-tax income.
• Debt-to-income ratio: This refers to the comparison between your total monthly debts (including the mortgage, credit card payments, student loans, etc.) and your gross monthly income. Banks usually prefer a debt-to-income ratio of 36% or less, although some may accept up to 43%.
• Your credit history and score: A solid credit history and a high credit score can increase the loan amount you can receive and improve the interest rates offered. Banks use your credit history to assess your repayment ability.
• Value of the property and your initial deposit: The amount you can request also depends on the value of the property you wish to acquire. Generally, you cannot request an amount higher than the value of the property. A larger initial deposit reduces the amount you need to finance.
• Type of mortgage loan: There are different types of mortgages, each with their own limits and loan requirements.
• Current market interest rates: The current interest rates also play a significant role in the amount you can request, as they influence the amount of the monthly installment you can afford.
• Using a guarantor: A guarantor is a person who legally commits to assume the debt if the principal debtor defaults on payments. This provides more security to the lender and can improve the loan conditions.

For a more specific and detailed assessment of your loan, it is advisable to consult with a mortgage advisor or a bank representative.