What salary to borrow 450 000 USD for a real estate purchase?

 

To start buying a house or apartment at 450,000 USD is not a decision to be taken lightly. Find out how to find the best financing.

Would you like to become an owner ? Before deciding whether to lend you 450,000 USD, the bank will make a complete diagnosis of your finances. To prepare your appointment with the bank and know in advance the minimum wage required to borrow this amount, it may be wise to use an online mortgage simulator.

How much does it take to borrow 450,000 USD?

How much does it take to borrow 450,000 USD?

First of all, it is important to specify that the duration of the loan determines the amount of the monthly payments and also has an impact on the credit rate. Indeed, the shorter the repayment term, the lower the rate. Conversely, the longer this period is, the higher the rate will be. In addition, a long loan term often results in a higher cost of credit as shown in the table below.

Duration of credit

Interest rate (excluding insurance)

Monthly

Cost of credit

15 years

2.30%

$ 2,958

82 506 USD

20 years

2.85%

USD 2,462

$ 140,888

30 years

3.50%

$ 2,021

USD 277,452

In France, the ceiling of the indebtedness rate admitted by the lending institutions rarely exceeds 33%. Thus, to get a mortgage loan of $ 450,000 over 20 years, borrowers must prove at least 7,400 USD monthly income. For a loan over 30 years, more than 6,000 USD of monthly income are needed. Reading this table, however, we see that the longer the loan period, the higher the cost of credit. It is therefore advisable to favor, as far as possible, a credit over a short period.

Tips for getting the best financing

Tips for getting the best financing

To benefit from the best financing, start by presenting a good profile by reassuring your banker about your savings capacity. A personal contribution corresponding to at least 10% of the amount borrowed, or 45,000 USD for a loan of 450,000 USD, is ideal. If this contribution is consistent, you will have no trouble negotiating the fees. However, the personal contribution is not essential to obtain financing.

You can opt for the loan offer made by your current bank. However, it is not necessarily the most advantageous. To identify the best mortgage offers on the market, feel free to use an online comparator by completing a quick form. In a few clicks you will get the list of the most suitable proposals for your profile.

Finally, to save time and money, you have the option to go through a broker. This professional uses its network of banking and insurance partners to offer you a tailor-made offer. It is responsible for completing all the steps related to the subscription for you.

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