What is the maximum amount I can borrow?

The following aspects are taken into account when determining the maximum amount you can borrow:

• - Your savings. As a rule of thumb, financial institutions do not give mortgages for more than 80% of the property value. Therefore, you would need to have savings to cover the remaining 20% not covered by the mortgage. What is more, if you have more savings, you will be able to borrow less and the overall cost of the loan will be lower.
  
  - Associated expenses. In addition to the 20% down payment, there are other expenses such as the appraisal and taxes like VAT, etc. You should also take the future cost of maintaining the property into account as it could be significantly higher than your previous situation.
  
  - Employment and personal circumstances. You should take your current and future employment situation into account, i.e. whether you have a permanent or temporary employment contract and your future career prospects. It’s important to think long term since a mortgage is a long-term commitment.
  
  - Other income and debts. To determine the maximum mortgage based on your salary, don’t forget to consider your income and outlays. For example, in addition to your salary, you might be receiving widow’s pension or rent from another property, in which case your net income will be higher and you can put more money towards buying a home. The reverse is also true, i.e. you may be paying back several other loans, have dependents or high medical expenses that take up a considerable portion of your income.