Case Studies
Here we have created a very simple example of a mortgage for a resident and a non-resident in order to give an overview of the factors involved in the mortgage calculation.
Mortgage Resident:
Looking at the client’s income, the maximum payment per month in this example is 600 Euros, as this plus the 300 Euros debt that the person already has, makes the DTI 30%.
The property price is 200,000 Euros and the mortgage amount (LTV) is 80% (160,000 Euros). Under these circumstances the client will need a deposit of 60,000 Euros (20% for the deposit on the property and minimum 10% for costs).
Bearing the above in mind and supposing a 2% fixed interest rate over a 30-year period, this client will be paying 592 Euros per month for his mortgage which is just below a DTI of 30%.
| RESIDENT | |
| Income monthly | 3,000 Euros |
| Other debts monthly | 300 Euros |
| LTV | 80% |
| DTI 30% (max. payment per month) | 600 Euros |
| Duration of the mortgage | 30 years |
| Property value | 200,000 Euros |
| Interest rate | 2% |
| Deposit and fees (30%) | 60,000 Euros |
| Monthly mortgage payment | 592 Euros |
Mortgage Non-Resident:
Below you see an equivalent example but with a non-resident. Looking at the client’s income, the maximum payment per month in this example is 600 Euros, as this plus the 300 Euros debt that the person already has, makes the DTI 30%. The property price is 195,000 Euros and the mortgage amount (LTV) is 60% (117,000 Euros). Under these circumstances the client will need a deposit of 97,500 Euros (40% for the deposit on the property and minimum 10% for costs).
Bearing the above in mind and supposing a 2% fixed interest rate over a 20-year period, this client will be paying 592 Euros per month for his mortgage which is just below a DTI of 30%.
| NON-RESIDENTS | |
| Income monthly | 3,000 Euros |
| Other debts monthly | 300 Euros |
| LTV | 60% |
| DTI 30% (max. payment per month) | 600 Euros |
| Duration of the mortgage | 20 years |
| Property value | 195,000 Euros |
| Interest rate | 2% |
| Deposit and fees (50%) | 97,500 Euros |
| Monthly mortgage payment | 592 Euros |
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