Do you want to take out a new loan? Whether it is a car financing, a personal loan, consumer credit or a mortgage loan. Our brokers will have to examine a series of objective criteria to assess your ability to take out a new loan. Calculation of the debt ratio online.
And above all your ability to repay it without difficulty and without altering your budget and your quality of life.
Among the few determining criteria that we will briefly recall in this newsletter, the debt ratio will most certainly be the determining criterion.
A brief overview of the question now
What are the determining criteria for obtaining a favorable decision on your credit application?
Our brokers will examine several key criteria:
- The first criterion will be to ensure your solvency: to do this, our brokers will verify that your professional or other income is sufficient to allow you to repay the requested credit and those that are already in progress;
- Being hired under a permanent employment contract is very important;
- You will be asked to produce your last three salary slips and your bank account statements which prove that your professional income is indeed paid into your bank account;
- You will also be asked to declare all current credit contracts;
- It will be verified that you are not registered or that the cancellation of your registration with the National Bank of Belgium is more than a year old;
- Our brokers will analyze your debt ratio.
What is the debt ratio?
The debt ratio is the percentage that your financial commitments (debts, outstanding credits) represent in relation to your total income. It is calculated using the following formula:
Total of your debts or due dates to be repaid monthly / the total of your monthly income X 100 = ….%
For example : Mr François Castel is employed in a service company. He receives a monthly net salary of €2,750. He pays each month: €1,250 for his mortgage loan, €350 for his car financing and €278 for a personal loan.
His debt ratio therefore amounts to: Total of his monthly expenses = €1,878 / total of his professional income = 2,750 X 100 = a debt ratio of 68%
Analysis of the debt ratio
To obtain new credit, the debt ratio must evolve within a range going from 30 to 50% maximum.
If the candidate borrower does not own a home, the debt rate cannot exceed 40 %.
On the other hand, if he owns a home, the debt rate can reach 50% maximum.
In the example of Mr. François Castel, he will no longer be able to borrow because his debt ratio of 68% is much too high.
Are there alternative solutions?
Of course when a person repays several loans taken in isolation, it is always desirable to carry out a credit consolidation so that you only have one credit.
In the case of Mr François Castel, our brokers will carry out a credit consolidation as part of the mortgage credit which will allow Mr. Castel to only repay a single monthly premium which will be much less than the accumulation of the three premiums taken in isolation.
Thus, via a credit consolidation, Mr. Castel’s total premium will amount to €1,450. This represents a debt ratio of 52%, which could allow subscription. A small additional credit which will be included in the same and single credit.
Do not hesitate to contact our brokers for more information…
Do you want to deal with an unforeseen event but you don’t know what the maximum debt rate is? Whether for consumer credits, real estate loans, current credits, repurchase of credits. Or consumer credit. Cpe helps you at all times and takes your borrowing capacity into account. Depending on the financial situation, monthly net income, alimony, whether or not you have a co-borrower.
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