Perspectives and advice by the DECORDIER immobilier Thonon and Evian agencies
Real estate borrowing capacity in Summer 2023: Perspectives and advice from DECORDIER immobilier Thonon and Evian agencies
The summer of 2023 marks a period of growing interest in the Chablais real estate market, both from potential buyers and investors. One of the crucial questions facing them is the mortgage borrowing capacity. As interest rates remain relatively low, understanding how to realistically and responsibly assess borrowing capacity is essential.
The economic context and interest rates
The state of the global and local economy plays a major role in determining housing borrowing capacity. In the summer of 2023, interest rates remain broadly stable, which has helped maintain an active real estate market. Low rates make borrowing more affordable, but it's important to stay informed about economic trends that may influence rates in the future.
Real estate borrowing capacity assessment
Several factors are involved in the calculation of the real estate borrowing capacity:
- Monthly income: The basis of any calculation of borrowing capacity is the monthly income. Lenders generally consider that a third of the income can be devoted to the repayment of the loan.
- Current debt: Lenders take into account existing debts, such as student loans, credit cards, and other outstanding loans. High indebtedness can reduce borrowing capacity.
- Debt ratio: The debt rate, expressed as a percentage, corresponds to the ratio between total monthly expenses and monthly income. Lenders usually have a limit, often around 30-35%.
- Personal contribution: Having a strong personal contribution can strengthen your mortgage capacity. A higher down payment reduces the total amount borrowed and may also allow you to negotiate better interest rates.
- Loan term and interest rate: Loan term and interest rates directly affect the amount you can borrow. A longer term may lower monthly payments, but will result in higher total interest.
- Improve Your Credit Profile: Good credit opens the door to lower interest rates. Before applying for a home loan, consider reducing your existing debts. This will increase your debt ratio and strengthen your borrowing capacity. Be sure to settle your debts on time, manage your credit cards responsibly and correct any errors in your credit report.
- Plan your budget: Establish a realistic budget taking into account your income, monthly expenses and savings. This will help you determine the wiggle room for mortgage payments. If you are already an owner, have your property or properties appraised. This will give you real value for your investments.
- Comparison of offers: Do not settle for the first loan offer that comes along. Compare interest rates and terms offered by different financial institutions to get the best option. Call your banker and especially a real estate broker. He is a real estate loan professional and has in-depth knowledge of the real estate market, negotiation practices, financing and administrative procedures.
The summer of 2023 offers exciting opportunities on the real estate market in Thonon and Evian-les-Bains, interest rates are still low. It is essential to understand its borrowing capacity in depth and not neglect the other financial aspects. By carefully assessing your current financial situation, working on your credit profile and planning wisely, you can maximize your mortgage capacity and realize your real estate projects in Thonon and Evian-Les-Bains successfully. Use the advice of personal finance and mortgage experts to make informed decisions.
DECORDIER immobilier agencies can help you with your real estate project:
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu
www.decordier-immobilier.com