When it comes to borrowing, the question that is most frequently asked is “How much can I borrow?” If you want to take out a loan, this is often the first thing that comes to mind. It depends on what you want to take out the loan for. When it comes to taking out a mortgage, the question is how much I can borrow is more relevant than that you want to take out a mini loan.
As with any loan, it is not wise, for example, to take out the maximum mortgage. When taking out the maximum mortgage, you just have to hope that your situation remains as it is when taking out such a mortgage. You take out a mortgage with a term of 30 years and in this period you must therefore hope that your income will not suddenly be a whole lot lower.
Personal loan or revolving credit
If you are going to take out a personal loan or a revolving credit, you will not have as long a term as with a mortgage. The term of a personal loan is usually 5 years and you do not know the term of a revolving credit when you take out this loan. With a revolving credit, you can take out and repay in the meantime and the interest is also variable. The term also partly determines the amount that you can borrow.
It is different when taking out a mini loan. You will also have to ask yourself how much I can borrow, especially if you have a BKR registration. Where the term of a mortgage is 30 years, the term of a mini loan is between 15 and 45 days. With a mini loan you can borrow a maximum of 1000 euros, but again this does not mean that you must also borrow this. Borrowing money costs money, you pay interest on the loan taken out. The less you borrow, the less interest you have to pay.
To the question how much can I borrow, multiple answers are possible. And when applying for a mortgage, this question is essential. Can you buy the dream house or not.
And as we wrote, do not stare blindly at the question how much can I borrow? It is not wise to apply for the maximum loan.