What salary should be for a mortgage?
To determine the amount of salary that a borrower must have to be able to obtain a mortgage loan, it is necessary to first carry out the appropriate calculations.
First, decide on the size of the loan itself and the period for its repayment. Depending on these parameters, the amount of the monthly payment that will need to be paid to the borrower will be calculated. Secondly, the interest rate and the total amount of overpayment on the loan are of no small importance. Since it will also have to be repaid monthly.
Most financial institutions are ready to provide mortgage lending services to borrowers if the monthly mortgage payment is 40-45% of their earnings.
You can independently estimate whether your salary is enough to receive the service by multiplying the amount of the regular loan payment by 2.5.
We should not forget that when considering a potential borrower, financial institutions evaluate not only his salary. The decision on lending is made based on an assessment of a set of parameters.
The monthly mortgage payment cannot exceed 50% of the borrower’s salary
At what salary do they give a mortgage at Sberbank?
One of the largest banks in Russia has set the average minimum earnings required to obtain a mortgage loan at 40 thousand rubles. Of course, this figure is conditional, since the average wage level and real estate prices are different for different regions of the country.
To understand at what salary a mortgage is given at Sberbank in a particular region, it is recommended to seek advice from the institution’s office. When considering a loan application, the borrower’s salary is assessed against the established cost of living in the area where the loan is issued, as well as the average cost of housing in the region.
The earnings of the borrower's spouse or other relatives are taken into account only if they are involved as co-borrowers on the mortgage.
How much interest can the loan payment be?
Calculating the approximate monthly mortgage payment will help you understand at what salary you can take out a mortgage. For each specific case, banks make decisions individually, but general rules still exist.
The monthly mortgage loan payment should not exceed 40% of the borrower's income.
Otherwise, fulfilling debt obligations may become difficult for him. The maximum allowable portion of the mortgage payment in the salary structure can be 50%.
The percentage ratio may change if co-borrowers are involved in repaying the loan . Then, to calculate the monthly payment, their income is also taken into account, which gives the bank additional guarantees in the return of loan funds.
Minimum salary for citizens of the Russian Federation
In Russia, there are various mortgage lending programs for low-income categories of the population. Within their framework, a citizen of the Russian Federation can earn 20 thousand rubles and provide the necessary documents to have a mortgage approved with government support.
Otherwise, to determine the sufficient level of income of citizens of the Russian Federation when applying for a mortgage, standard principles for calculating the monthly loan payment apply. And based on it - the required income of the borrower.
When lending to foreign citizens, real estate, as a rule, is owned by the bank until the debt is fully repaid
Minimum salary for foreigners
To get a mortgage, a foreigner needs to obtain a residence permit and earn a decent income. At least several times higher than the average salary in the region.
Such stringent requirements of banking institutions are associated with limited access to the credit history of a foreign borrower. To minimize risks, banks, as a rule, register real estate as collateral. The housing is owned by the bank until the debt is fully repaid.
According to statistics, the minimum level of earnings for foreign citizens is 50 thousand rubles . The figure is conditional, depending on additional factors identified during the consideration of an application from a potential borrower.
Calculation of required salary
It must be said right away that approximate calculations are only suitable for obtaining a mortgage with annuity payments. In this case, the amounts do not change throughout the entire payment period. This means that it will be possible to predict in which case the credit commission will not refuse a potential client.
The amount of monthly transfers should not exceed 40% of the borrower’s stable income. Only in this case will banks give a mortgage without any questions asked. This means that you can freely calculate at what salary you can sign an agreement without additional checks and guarantees of solvency.
Will they give you a mortgage if you have a low salary?
So, if monthly payments are 16,000 rubles, then the borrower’s income should be 40,000 rubles. Of course, only a few people can consistently receive such amounts, but they will still be too small to purchase a good apartment. Because of this, getting a mortgage often involves tricky steps that can support a person.
What income is taken into account when approving a mortgage?
Not only official wages are taken into account by the bank when considering an application for a mortgage loan. The minimum salary for a mortgage may only be part of the income component specified by the borrower in his application.
To confirm your well-being, you can submit documents about the availability of additional sources of income: a contract for the provision of services, rental of existing property, part-time freelancing, a certificate of income of a spouse or relative. The lease agreement must be officially certified, and taxes must be paid on the income received.
Doing business is also considered as an additional source of cash income. At the same time, all documentation must be open, and the required tax contributions must be paid from the profits received.
Official salary
Official salary is a key parameter when assessing the solvency of a potential borrower. In addition to a certificate of income, banking institutions also request a copy of the work book, which must contain the appropriate marks of employment. Credit department employees pay special attention to the borrower’s length of service at each place of work. If he often changes employers or his total work experience does not meet the bank’s requirements, the institution may refuse to lend.
The amount and fact of receiving an official salary is indicated in the borrower’s income certificate.
It can be drawn up on the letterhead of a banking organization, according to the accounting form 2-NDFL, or on the letterhead of the enterprise where the borrower is employed. The document must indicate the amounts received by the employee, the frequency of their receipt, as well as the amounts paid as mandatory tax contributions.
The amount of the official salary is indicated in the 2-NDFL certificate or on specialized forms
A correctly completed statement must be attached to the mortgage application. The bank will verify the authenticity of the information provided, so do not try to fake or embellish the real state of affairs. This may influence the institution's decision.
Black and gray income
To assess a client’s reliability, banks consider not only his official earnings, but also his additional earnings. Almost all credit organizations do this, except for those who lend to the population according to AHML standards. Additional income can be black and gray.
Gray income is income received by a citizen partly in an official manner, partly based on an extract in a free form . The second part does not pay tax contributions to the budget. When receiving black income, no payments are made to the budget at all.
In the case of a gray salary, the unofficial part of it must have the sanction of a responsible person: an accountant, manager or executive director of the organization employing the borrower. The size of the official part will no longer influence anything.
Black wages are considered as a source of income only if their receipt does not contradict the legislation of the Russian Federation.
What should a family's income be to get a mortgage in 2020?
Borrowers who cannot provide the above certificate have the right to fill out a document according to the bank’s form. This applies to citizens working in organizations that are prohibited from issuing documents on the amount of earnings in order to maintain confidentiality (for example, state security structures), and those who work unofficially, receive salaries in envelopes, etc. In this case, a loan is offered for an amount of no more than 50% of the cost of the purchased housing (if there is a 2-NDFL form - no more than 85%).
Confirmation of existing income
The bank requests from the borrower, as proof of income, either a 2-NDFL certificate, or an extract on letterhead from the place of work or from the bank (most often, especially in cases of gray income).
Additional sources of income can be taken into account when providing the institution with the following documents:
- statements of accounts from financial institutions (personal, card, with mandatory indication of the purpose of payment);
- lease agreement for movable or immovable property;
- marks in the work book;
- tax return indicating the amount of revenue received and payment of required contributions from it (for legal entities and individual entrepreneurs).
If it is necessary to clarify information or provide any other data, bank employees will notify the borrower. He will need to deliver the relevant documents in due time. Otherwise, lending may be denied.
The bank will check the information on the borrower’s income specified in the application for authenticity.
How does a bank check income?
In some cases, when the borrower is ready to pay 50% or more of the cost of the property as a down payment, the financial institution may not verify the authenticity of the certificates provided to them . If the payer does not have such an opportunity, all documents will be double-checked.
Official income is verified without notifying clients about the procedure. Government institutions can obtain information from the Pension Fund of the Russian Federation or the State Services portal about the amount of contributions deducted for the borrower.
Without fail, employees of the credit department call the potential client’s employers to check whether he is actually employed by them, whether his level of income corresponds to that specified in the application, and general characteristics. They are also interested in the prospects for his work activity: is there any planned layoff, has he submitted a letter of resignation, etc.
If additional sources of income are indicated in the application, the bank will try to verify their authenticity. For this purpose, documents, certificates will be requested, and it is also possible for employees of the institution to personally visit the potential client’s place of work.
Ways to increase income
It's time to remember that not only official wages are taken into account by the commission. When the question arises of how much income a person needs, one has to remember complex calculation methods. Only they show that there are real ways to get a mortgage. What options are suitable for the borrower?
- Additional income;
- Co-borrower.
Of course, there are other guarantees of payment of the entire amount, but they do not need to be considered when the question arises of what income is indicated to obtain the necessary funds. As a result, each of the options should be evaluated in detail, because they contain a lot of important opportunities.
Additional income for the borrower
First you need to understand what additional income is suitable for the bank. In reality, people earn good money every month, but they do not always know how to indicate it in the application form. An excellent example is dividends on personal deposits in other banks. They are suitable for obtaining a mortgage, so it’s time to understand how to find the necessary data.
When they don’t give you a mortgage, but you have personal deposits in third-party banks, you just need to go to the nearest branch and get a printout for the last 3 months. Although the indicated amounts may not be of interest to every credit commission, this income is still worth confirming. Moreover, large deposits are an excellent guarantee of the borrower’s solvency.
What income is needed to get a mortgage?
True, some financial organizations are ready to take into account even the availability of debit plastic cards in third-party banks. It is not so important to them what contribution is made to them, the main thing is that there is another place where money transfers are made. Accordingly, income is considered only indirectly.
What to do if you don't have enough income
If the confirmed level of earnings is not enough to obtain a mortgage loan, you can take measures to change the situation in a positive direction.
To increase the amount, you can bring additional certificates to the bank that will confirm a higher level of income. These may be lease agreements for movable or immovable property, statements about the presence of active deposit accounts, securities, jewelry, etc.
You can attract a third party as a co-borrower, then the total salary of all mortgage payers will be taken into account. According to the terms of the mortgage loan, the applicant's spouse automatically becomes a co-borrower on the loan.
It is possible to provide existing property as collateral for a mortgage. In case of violation of the terms of the loan, the bank will have the right to sell it to cover its losses. But its cost will be taken into account when calculating the amount of the mortgage loan.
Attracting a co-borrower will help increase the amount of mortgage lending
