## What salary to borrow 550 000 USD for a real estate purchase?

1 year ago

You want to get the sum of 550 000 USD to finance a real estate purchase? Find out what is the salary needed to convince the bank.

The calculation of the borrowing capacity makes it possible to know how much it is possible to be granted in the context of a mortgage. To know the exact amount you can borrow, you have every interest in doing a simulation online. Explanations.

## Method of calculating borrowing capacity

Financial institutions use the same method to determine borrowing capacity. They begin by calculating the debt ratio to know the portion of monthly payments that the borrower can support without exceeding the threshold of 33%. To obtain this rate, simply accumulate your fixed costs (rent or monthly credit + monthly other credits) and divide them by all of your income. To appear as a percentage, the result must be multiplied by 100. For example, the limit of 33% will represent 500 USD for an employee who receives 1,500 USD per month.

To determine your borrowing capacity, the institution will also rely on the rest to live. This is the amount of money left in the home to live each month. This indicator is calculated by subtracting household income (salaries and allowances) from fixed expenses (rent, insurance, taxes, monthly payments, etc.).

Finally, the existence of a personal contribution can allow you to borrow more money from the bank. The ideal contribution corresponds to 10% of the sum borrowed, ie 55,000 USD in the case of a loan of 550,000 USD.

## What salary to take out a loan of 550 000 USD?

For a loan of 550,000 USD over 25 years (300 months) at the rate of 2.70% (excluding insurance), the monthly payment amounts to 2 064 USD per month. Taking into account the debt ratio to 33%, you will have to justify a minimum wage of more than 6,000 USD to hope to convince the bank to respond favorably to your request. Obviously, the shorter the loan period, the higher the minimum wage required.

Thus, it is important to properly evaluate the cost of your real estate purchase project before you start looking for property.

## Why do a credit simulation online?

To know the exact minimum wage amount to borrow the sum of 550,000 USD, it is strongly recommended to make a simulation online. This free and non-binding tool allows you to accurately assess the cost of your loan and tailor the financing plan accordingly. To use it, all you have to do is fill in several information about your project (nature, amount, duration) as well as your financial situation (profession, income, expenses). The result is displayed in seconds.

After performing an online simulation, you can compare the loan offers offered by banks. The use of a 100% online comparator is recommended.

## What salary to borrow 350 000 USD for a real estate purchase?

Fri Oct 11 , 2019
You wish to concretize your project of real estate purchase? Find out what is the salary needed to borrow 350,000 USD. Before granting a […]

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