Real estate loan: what rate should you...
You've found your dream house, and all you have to do now is take out a housing loan with your bank. You're wondering whether to go for a...
A financing plan is used to find out both how much your investment will cost and your available resources.
The amount that you are able to repay is equal to the sum of your regular income, from wages or family benefits, for example, less your total regular outgoings, e.g. monthly repayments of existing loans or home-purchase savings plan instalments.
As a general rule, you should be able to spend a third of your monthly budget on repaying your real estate loan. This limit may be exceeded, however, providing that you are still able to balance your budget. Your personal circumstances are unique and only your housing advisor will be able to provide you with a tailor-made financing plan.
Just subtract your total own funds from the total costs to find out how much you need to borrow!
To find out how much you need to borrow, just list all of the project costs, such as the building purchase price or construction cost, the cost of the land, and the cost of any renovations, without forgetting related expenses such as architect's fees and mortgage deed fees. This will tell you the total costs.