The moment to define how much money you must contribute for your mortgage if you have already chosen the area where you will buy your apartment and the method of purchase will be through a mortgage loan.
The first thing you should know is that the monthly payment of a mortgage will be a long-term investment and that before this you will have to pay a down payment of at least 15% of the total amount of the property. You should consider this first investment as part of your expenses and prorate the amount by the time it took you to save it. This way you will recover the savings for future expenses.
But how much should you contribute monthly to your mortgage?
There are intelligent calculators that allow you to know how much you will have to invest initially and monthly for the purchase of your property. It is best to choose a larger down payment for a lower monthly payment.
Now, what experts recommend is that this payment should not exceed 30% of your monthly income . Ideally, less than 40% of our income should be used to pay investments and debts .
Contribute 40%, 30% or 20% of my income?
This decision depends a lot on you and your lifestyle. If you are a homebody who thinks about settling down or understands the value of real estate investments, you could allocate between 35 and 40%, but if you are someone who likes to get into debt, buy and travel, you better think about 20 or 25%.
And if after calculating your income and expenses your numbers do not add up, it is better to look for other payment options or expert advice to show you new real estate options more suitable to your finances.
Remember that buying real estate is a long-term commitment, so you must make a thoughtful and intelligent decision.
