What salary to borrow 600 000 USD for a real estate purchase?

 Would you like to take out a loan of 600,000 USD to buy a property? Find out what income is needed to borrow this amount.

You have finally found the house or apartment of your dreams and this property costs 600 000 USD. What is the salary level required to obtain this funding? What are the criteria studied by the bank to respond to your request? Answers.

Calculate your debt ratio

Calculate your debt ratio

To know if you can borrow 600 000 USD, it is necessary above all to calculate your debt ratio. It should not exceed 33% of your income. In a simplified way, this percentage means that, to obtain financing, your salary must be at least 3 times higher than the monthly payment of the loan. However, it should be noted that this rate of 33% remains theoretical and does not meet any regulatory obligation. Indeed, banks believe that lending to a profile whose debt ratio is higher than 33% is too risky. The analysis of this risk is also based on the rest to live and the family quotient. After studying your file, the bank can therefore modulate the debt ratio up or down.

Personal contribution plays an important role in the demand for funding. It can provide a better rate and also helps to reassure the lender. The ideal personal contribution corresponds to 10% of the selling price, ie 60,000 USD for a loan of 600,000 USD. However, this sum is not essential to get a loan.

The salary needed to borrow 600,000 USD

The salary needed to borrow 600,000 USD

To know the level of salary required to contract a credit of 600 000 USD, it is necessary to determine the maximum monthly payment. In this table, it takes into account the cost of the loan.

duration

 

Maximum monthly payment

Minimum monthly salary

15 years

3,578 USD

10,842 USD

20 years

2,786 USD

8,442 USD

25 years

2,358 USD

7,145 USD

Thus, to borrow 600,000 USD over 20 years, the minimum wage required is 8,442 USD per month. If you wish to borrow this amount over 25 years, you will have to prove a minimum monthly salary of 7,145 USD. In any case, the credit agency will ask you for several supporting documents, including your latest pay slips, latest tax notices and bank statements, to find out your financial situation.

Why use a real estate mortgage calculator?

Why use a <a href=real estate mortgage calculator?” />

Would you like to know the amount of your future monthly payments or your borrowing capacity? Feel free to use a free online mortgage simulator without obligation. After having filled in several information on the desired credit as well as on your personal and financial situation, you will immediately obtain the result.

The competition of banks is the surest way to get the best mortgage offer.

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