The size of the borrower's income is one of the most important factors affecting the approval of a mortgage loan. It must be sufficient to meet mortgage obligations.
How To Determine Income Level For A Mortgage Loan
In order to determine the required level of income for obtaining a mortgage, you need to calculate the monthly payment. It depends on the size of the down payment, the amount and terms of the loan.
For example, with a mortgage loan of 5.5 million rubles. with a rate of 13.5% for a period of 10 years and with an initial payment of 10%, the amount of monthly payments will be 74,537.98 rubles. Some banks require the borrower's income to be such that the monthly mortgage payment does not exceed 30% of the income, in others - 40-50%. So, if the bank has a 40% bar, then you need to multiply the monthly payment by 2.5, this will be the minimum income. Those. if the monthly payment is 74.5 thousand rubles, then the income must be at least 186.25 thousand rubles.
If the borrower does not have sufficient income to receive the required amount, he can either increase the down payment or extend the loan period. So, if, with the specified parameters, the borrower pays 20% of the cost of the apartment, then the payment will decrease to 66,254.71 rubles, and the income should be 162.63 thousand rubles. An increase in the term of the mortgage to 20 years will reduce by 13 thousand rubles. monthly payment and required income - 32.5 thousand rubles. It is important to take into account that an increase in loan terms entails higher interest rates for using a loan, as well as an increase in the amount of overpayment. So, in Sberbank with a mortgage for up to 10 years, the rate is 13.5%, up to 20 years - 13.75%, and up to 30 - 14%.
With differentiated loan payments, which are more profitable for borrowers in terms of overpayment, the amount of monthly payments at the beginning of payments will be higher than with annuity payments. Accordingly, the amount of income must be higher in order for the borrower to be able to make payments. So, with a mortgage for 10 years in the amount of 3.5 million rubles. with a rate of 13.5%, monthly payments for an annuity scheme will amount to 53,296 rubles. Accordingly, the income should be approximately 106-133, 25 thousand rubles. With a differentiated scheme, they will initially reach 69,297 rubles. (although at the end of payments they will reach 29,500 rubles), thus the income for obtaining such a loan must be higher - from 138.58 to 173.23 thousand rubles.
Some banks allow a preliminary estimate of the maximum loan amount based on the amount of income. For example, in Sberbank with an income of 60 thousand rubles. you can count on a mortgage of up to 3.5 million rubles. for a period of 20 years.
What Other Factors Affect Mortgage Approval
It is worth noting that although the borrower's income is really very important for obtaining a loan, along with them, other factors are taken into account. In particular, the nature of the employee's employment (permanent, under a contract, individual entrepreneur or business owner, etc.), the duration and continuity of his work experience, family composition, the availability of other loans, the level of education, the presence of other assets. So, for example, if the borrower owns another apartment, car or other valuable property, then the amount of his income may be lower.
Borrowers who do not have the ability to confirm their income today have the opportunity to get a mortgage without providing any certificates at all. Sberbank and VTB24 issue mortgages based on two documents. The only limitation of such loans is that the borrower must have a fairly impressive down payment for the purchase of housing - at least 35-40%.
