Knowing how to calculate the ideal monthly payment for your mortgage is not an easy thing. Here are tips to help you properly define the amount of monthly repayment of your loan. You will be able to calculate how to optimize the cost of your mortgage while maintaining a reasonable debt capacity.

Calculation of a loan payment: why is it important?

The monthly payment is the central element of your mortgage. By setting too low monthly payments, you will certainly have greater financial freedom in everyday life, but your loan will cost you very expensive.  Conversely, by taking out a loan with excessive repayment payments, you put yourself financially at risk and compromise your future. The use of the payday loans come very important here.

The calculation of its borrowing monthly is therefore very important.  It should take a few minutes to take stock of his finances and calculate the monthly payment adapted to your situation. Here are 10 tips for calculating your monthly payments and making the right choice. These tips are just a small glimpse of the ones you will find in our guide “Take charge of your mortgage”.

To find out the amount of the monthly payments that you will have to pay according to the amount of your mortgage and the interest rate obtained, use our monthly payment calculator.

1. Define your regular cash flow

The first thing to do is to accurately calculate all your regular cash receipts to determine what your monthly income is. This calculation will be based on your monthly net wages but also on your other sources of income (rental income, income from your investments, social benefits such as family allowances, alimony, etc.) Be careful if a part of your income is variable to not count it as acquired in its entirety. You must estimate an average over this variable part over at least 10 years.

2. Calculate your current debt ratio

Calculating the monthly payments of all your current loans will be the first thing a banker does. You have to list all the consumer loans, car loans, mortgages you are currently paying. As a general rule, banks will check that your monthly mortgage payment plus the monthly payments of all these other credits do not exceed 33% of your income. We will see that this limit is not an obligation but a good benchmark.

3. Take stock of your fixed expenses

Housing is not your only expense: food, health, car, insurance, taxes, etc. The money outflows are numerous. Try to make an estimate, as accurate as possible, of your fixed expenses. Do not forget to include in this calculation all the monthly payments of the other loans that you still have to repay.

4. Do not forget to be able to please you

Aside from the fixed expenses of eeryday life, we must not forget to keep part of its budget at pleasure expenses. The purchase of your house or apartment should not stop you from living.  Define how much of your income you want to keep for your holidays, hobbies, etc. While this may seem obvious at first glance, it is not uncommon to see families not go on vacation and / or no longer be able to afford superfluous pleasures because of high monthly payments for your home.

Buying real estate and making a mortgage is not something you do every day. Here are some tips to help you choose the best mortgage loan formula for buying your home.

Here are some tips to get you on the right track for your mortgage:

Banks are not the only ones to allow individuals to take out a loan. Savings banks, insurance companies, mortgage companies also do it. Feel free to compare! Some companies will have conditions more suited to your situation than others. Your job, your family situation, being entitled to a social loan, being a loyal customer all these elements can intervene and give you better conditions. For the good at mortgage loan Singapore this is important.

Mortgage for You

Contracting a mortgage is not done in a day. Gather information, negotiate, have the approval of the bank, have the approval of the head office of the bank, transfer the file to the notary, give the necessary information to the notary. Only then will a proposal for an act be drafted. All this procedure will take a few months.

• The buyer must have the necessary funds. That is why it is better to agree with the buyer of the moment of the execution of the act.
• The notary can also provide advice: giving information is free. Only extraordinary services can be invoiced.

How will you distribute the outstanding balance insurance between you and your spouse? Do you choose a constant or variable balance insurance premium? Do you opt for a single payment or a premium spread over several years? Is your premium tax deductible and is it necessary? Have you compared different outstanding balance insurance premiums?

The Tax Deductibility

The tax deductibility of your loan, interest and premiums: this does not mean that the state pays for you. You will pay fewer taxes because repayments to the bank or insurance company are deductible from your income. You will notice this effect after 2 years. Here also the conditions will have to be fulfilled. With the most trusted money lender in Singapore this is important now.

One last tip: go through these questions and try to find an answer in your offers. You will be well prepared to make the best choice.

Some expenses that arise from the purchase of a home must be paid only once. These are important. In Wallonia, you will pay 12.5% ​​of the purchase price for registration fees… In the case of a new construction, you will pay 21% VAT on materials and working hours. The registration fee in the Flemish Region is 7% of the purchase price of the property for your own family home. You will also have to pay notary fees and mortgage fees.