To borrow €275,000, what salary do you need (single or couple)?

Taking out a loan of €275,000 from a bank or a credit company is not always easy. You have to make sure that the salary you have allows you to apply for a loan of such an amount, whether you are alone or as a couple. Here are some indications regarding the debt ratio and the funding capacity of a borrower in this type of situation.

What is the authorized debt limit in the event of a loan?

For the loan to be granted without difficulty, the banks grant a debt ratio of 33% of the borrower's resources. However, depending on the financial situation of the applicant, this rate may be exceeded in certain cases without exceeding 40% of resources, whether alone or in a couple. Indeed, it is obvious that a household that saves every month and is rarely overdrawn is considered risk-free by the bank. He will therefore see his debt ratio exceed the required 33%. Conversely a bank balance that is consistently in the red may result in an unfavorable banker rating.

To determine the repayment capacity of a borrower, the creditor takes into account certain elements such as:

• The amount of personal contribution :the larger it is, the lower the capital borrowed, which implies reduced monthly payments.
• The expenses to be taken into account by the bank for the calculation of the monthly payments are:
  • Current credits,
  • The alimony,
  • Taxes (income, housing and land taxes).
• The still to live :this is the amount available after payment of installments and charges. It can significantly reduce borrowing capacity. This mainly concerns the following current expenses:
  • Contributions (health, home, car insurance),
  • Subscription (telephone, Internet, TV),
  • Energy suppliers (water, gas, electricity),
  • Tuition fees,
  • Food,
  • Clothing,
  • Leisure…

Banks favor married or PACS couples more than single people. Indeed, the financial situation of a household with two incomes reassures the bankers of the fact that the resources are often higher for a couple than for a single borrower.

What salary to borrow €275,000?

For the calculation of a loan, the monthly payments to be taken into account depend on the credit rate and the duration of the repayment.

Thus for a borrowed capital of €275,000 at the rate of 1.5%, the amount of the monthly payments and the income ceiling are as follows:

Borrower insurance is not included in the monthly installments. Although optional, it is nevertheless recommended. Be careful, few banks agree to lend such sums if the borrower does not opt ​​for credit insurance either by choosing group insurance – the one offered by the bank -, or through the delegation of insurance.

In order to more easily estimate their repayment capacity, the interested party can use an online simulator . Practical and free, this comparative tool is able to calculate the monthly loan payments and, consequently, to define the minimum amount of resources to be expected in order to hope to be loaned €275,000.