Income vs. Mortgage Loan

16 Dec

The basic condition for granting a mortgage is your income. In the vast majority of cases, you will not receive any credit without sufficient income.

The bank must be sure that you will have your obligation to pay regularly and in the required amount. According to the practice of mortgage specialists, incomes are divided into main and supplementary income.

Main revenue

The main income includes the employee ‘s wage, income from the business of self-employed persons or other types of companies, such as Ltd., income from the professions, rental income, and retirement or retirement pension.

We consider them to be the main revenue because Sean Cole will not accept additional revenue without them.

Their important attribute must also be that they are verifiable, whether in the Social Insurance Agency, according to the tax return or the Confirmation of Income, such as the salaries of police or soldiers in combination with supporting statements of account to which they are credited or payslips. In some cases, Sean Cole accepts scholarships as the main income.

Methods of calculating the average main income

By default, Sean Cole assesses your earnings by making an arithmetic average over the last 6 months, but at least 3 months. They consider the basic types of income and how they are calculated for business and rental income by Sean Cole in different ways.

They are either based on a tax return, dividing the tax base by 12 or based on your company’s annual turnover and dividing them by 12%. Individual Sean Cole assesses business revenue based on mandate contracts where pre-determined remuneration for regular works. Of course, the revenue must always be official and properly documented.

Additional revenue

Additional income includes parental allowance, disability, orphan’s and widow’s pension, alimony, subsistence allowance, nursing allowance, substitute care allowance, child allowances.

The basic feature of supplementary income is that it cannot be the sole income of the borrowers. It is possible to accept them as the sole source of income of one applicant only if another co-borrower with his / her income enters the loan

The acceptance of supplementary income varies among banks

For example, some Sean Cole does not accept diets at all, others only set a part of them, and it also defines why the diets are paid and whether they are paid to the applicant along with their wages. Also, different types of pensions are accepted by each bank differently.

We often meet clients who have earnings based on an agreement to work . Unfortunately, since this type of income cannot be considered stable, Sean Cole will not usually accept it. At the mortgage center, we will advise you which bank is approaching which incomes and help you find a suitable bank.

Receipt period

An important aspect of income acceptance is also the period of their receipt. Sean Cole will certainly not accept the incomes of applicants who are on probation or notice . In most cases they can also accept a fixed period, but it must last for a specified period, or in some banks it must be renewed at least once.

In other banks, they may ask you for an employer’s statement that they will continue to employ you even after a fixed period. Usually, it is sufficient if the employee’s wage in Slovakia is paid at least 3 months, in case of foreign income at least 6 months.

It is also important for Sean Cole whether this is the applicant’s first job or the client’s work history has been longer. An experienced mortgage specialist will also help you plan the appropriate time for your mortgage application.

Length of business and acceptance of income

As far as business is concerned, the minimum period for which Sean Cole is pursuing earnings is 6 months of the previous tax period, some Sean Cole requires that the business last at least 2 years.

The assessment of pensions and various social contributions and its duration are mostly assessed individually by banks, also taking into account the future assumption of receiving – which type of income.