Do you want to borrow money and are you curious about the maximum amount that you can borrow? That depends on a number of different factors. For example, take into account the maximum monthly repayment that you can do, the family situation you are in and the collateral that you have to offer. Are you taking out a home loan? Then the house is the collateral. This ensures that the bank runs less risk, so that you can generally borrow more. Are you taking out a consumer credit? Then there is usually no collateral.
The net income
If you are going to borrow money, it is in any case important to state your net income. This is one of the most important factors, since it determines how much money you have available each month and what you can pay in interest and repayment. The higher the net monthly income, the more money you can borrow. In addition, bear in mind that you can usually borrow more money if you both have an income as partners, instead of working and the other person, for example, takes care of the children.
Other loans or costs
It is also important to indicate what other costs or other loans you have. You can borrow money as soon as you have the financial room for it. Do you already have another loan? Then you should take into account that this will take up financial space, as well as for example the rent, the costs for the children’s school and the electricity. You must offset the net income and the costs to determine which income you have available to borrow money.
Purpose of the loan and credit history
After all, it is a good idea to indicate what the purpose of the loan will be. For example, are you taking out a personal loan? Then the bank generally wants to know what you will do with it. You can usually take out a car loan for an amount that is at most equal to the value of the car, while you can be more flexible with a personal loan. In addition, you must of course have paid off any previous loans. Have you done that and do your income and costs still offer room? Then you can borrow money, for example for the new kitchen that you have in mind.