Posts Tagged ‘Mortgage’
Gross Monthly Income
Your lender will look carefully at the gross monthly income for all borrowers. This is the amount paid to you before taxes are deducted. If you’re applying on your own, provide pay stubs to verify your income amount. If you’re applying jointly with a partner or spouse, make sure you provide evidence of all income you each receive.
The bank will calculate your affordability based on the net income amount you receive, less any existing repayment obligations you have, less an amount allocated for living expenses.
According to Wim Assen Bergh, economist at Van Lanschot, banks are more cautious because they have their own capital to strengthen its position because there are blows to come. So are the expectations that a lot of business and consumer loans will never be met because, as a result of the economic crisis, no longer able to meet their commitments. To cope financially, banks are already building a buffer, this is one of the reasons why the market is still fairly locked.
The above also applies to the mortgage, but that this interest remains in the Euribor rate has several causes. For example, the mortgages financed by savings. The interest on savings was given last year to unprecedented highs, this is one of the reasons that the mortgage rate is also higher. Although the savings rate is now declining, it remains the mortgage maintained, this is because many mortgages are closed with a fixed rate period.