In the case of loans, the calculation of capacity is based on several factors. First of all, we calculate stable income most often based on recent months depending on the form of employment. In the case of an employment contract, it is usually 3 months and we document these earnings on the basis of a certificate from the employer or receipts to the bank account.
Contracts for specific work or orders are usually the average for 3.6 or 12 months documented by account receipts, contracts with bills or based on PIT settlement. As for the business, depending on the form of settlement with the Tax Office, we can calculate in the next entry where I will try to present specific calculations (How to calculate net income for business). Retirement is one of the most stable incomes, therefore information about granting is enough to include it in the calculation of your ability.
How to calculate a stable income?
The creditworthiness of cash loans is very simple to calculate and you can usually do it on your “knee” except that these calculations will not always be reflected in reality. By converting your remuneration e.g. for 3 months as an average, we multiply the DTI factor by 50.
The amount received is the maximum installment of loans that we can pay with the fact that it is a simplified calculation that does not take into account additional parameters. To be more specific, it is necessary to assume maintenance costs, fixed fees (maintenance, company loans, permanent insurance, etc.) for these calculations.
if these 2 conditions are met then creditworthiness. As for the cost of living, there is no single formula and you need to get this information from an agent or bank. A new law has recently been introduced where the cost of living changes depending on the loan period, therefore costs are lower up to 60 months.
Above 60 months you have to take into account higher ones, and therefore with low wages or high fixed costs, the capacity drastically decreases. For example, earning USD 2,000 net and being alone without obligations we can get, for example, USD 50,000 for 60 months and only USD 40,000 for 120 months. Of course, this is just an example, however, such cases can happen.
Mortgages – What besides installments is counted?
At the moment, housing loans are very popular and it is influenced by the construction and economic boom. Countless developers and new investments that sell like hotcakes. However, is it so easy to get a loan for your own M2? The answer is yes and no. To calculate your ability, you need to use a scheme similar to those of cash loans, however, more complex because it is very difficult to assess for yourself whether you have the ability or not.
Virtually every bank has a calculator that is supposed to simplify the lives of employees and agents. The number of dependents is very important and is meticulously verified by banks by checking account statements or PIT attachments or receipts from 500+.
Private and company obligations are absolutely necessary for initial calculations, and the bank will check whether it is in accordance with the declared ones because it will download a Credit checker. In the case of household maintenance costs, the number of dependents mentioned above, as well as fixed fees and place of residence (the bank estimates the appropriate costs on this basis). There are also other variables included in the calculation, such as maintenance, leasing, company loans, etc.
Company loans – all income as an installment?
As for corporate loans, the recommendation and DTI do not apply here, so when calculating a stable net income we subtract from it the costs of maintenance, installments of private and company loans (in the case of account and card limits we accept from 2 to 5% from the limit granted depending on the bank). The rest of what can be spent on installments of company products.
Therefore, when applying for a company loan, this ability is definitely higher than in the case of cash or mortgage. However, it should be remembered that, as in other products, capacity, such as alimony, leasing or other fixed costs, which I mentioned earlier, are accepted as burdens.
Banks usually accept their living costs, however, we usually have to declare some amount and if it is higher than the one in the table, the bank will take into account the higher one.