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Affordability
Two
factor essentially are taken into account in establishing
the amount to be borrowed
Loan to Value (LTV):
The
Maximum amount that will lend on a home loan is 100% of
the purchase price i.e. LTV 100% so therefore in purchasing
a house costing 200,000 could provide up to 200,000
of the purchase price leaving the applicant with 16,000 plus
fees and stamp duty applicable.
See Family First Homeloan
Affordability:
All
loan applications are individually assessed on the basis of
how much after tax income is available for loan repayments
and meet financial commitments including standard household
expenditure.
Mortgage repayment as a percentage of after tax income should
generally fall within range of 30% - 45%.
The standard household expenditure* is deemed to be to the
order of 1600 per month for a single person and 2200 for
two people. The figures include 254 per month towards the
cost of running a car. The figure should be increased by 165
for a single dependant and by 100 for every additional child
or dependent.
Rental
income is also taken into consideration. Remember a home owner
can earn €7,618 in lodger/rental
income tax free.
For those earning additional income please be sure to mention
it to us as this will be taken into account to provide you
with the maximum loan possible, where required.
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