# First calculate how much you can borrow!

You want to borrow money, but you wonder how much money you can borrow. Fortunately, the answer to this question is very simple. You can calculate this simply and easily online. There is a suitable loan for every loan purpose (and therefore loan amount), but the follow-up question is whether you can afford it. There are also some disadvantages, because borrowing money costs money. Anyway, I'll explain. Do you read on?

## The usefulness of a calculation tool in determining the loan amount

You want to drive a nice car, but you prefer a financial lease form . Or you are looking for an extra savings bank in case the washing machine breaks down. But maybe you want to make your home more sustainable and take out a green loan. Whatever the reason, it is useful to calculate in advance and to know whether you can pay the financial costs of the new loan.

If you want to buy a new home, you can also calculate the maximum mortgage you can get in advance. That saves some research on Funda for a dream home with a large garden that may not fall within your budget. And that is also how it works with other types of loans to use the calculation tool to calculate what your costs will be.

## How is the maximum mortgage calculated?

The maximum mortgage is usually calculated on the basis of your gross annual income and that of your partner. Some lenders also look at the collateral, or the home you have in mind. In addition, it also plays a role in whether you still have current obligations, such as loans and partner maintenance, when calculating your maximum mortgage.

Are you an entrepreneur? Then your maximum mortgage will be calculated in a different way. Often the average annual income of you (and that of your partner) of the past three years is looked at, but also the forecast for this year.

## There are also other types of loans

Even if you choose a different loan form, such as a revolving credit or personal loan, it is worth using a calculation tool. Reading the fine print should also not be forgotten, because with some lenders you cannot pay off penalty-free .

If you opt for a personal loan, you can borrow an amount of up to € 75,000 from a lender. The minimum term is 12 months and the maximum term is 15 years. In some cases a longer term is possible, but additional conditions will be set.

With a personal loan, the interest and term are fixed. In addition, there is also a flexible loan, also called a revolving credit. A revolving credit can be suitable if you do not yet know how much money you will need in total (for your renovation). If you have repaid part of the amount, you can withdraw it later up to the maximum loan amount. That sounds tempting, but it certainly doesn't have to be. If you do not pay off and only pay interest, your debt will remain the same. If you want more security, a personal loan is a better alternative.

The interest is also deductible if you use this loan exclusively for the maintenance or improvement of your home. The advantage compared to a mortgage loan is that you do not need a valuation of your home with these other types of loan, and that quickly saves € 500 in costs.

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