What salary to borrow 300,000 euros in mortgage loan?

Have you found the house or apartment of your dreams? Maybe even signed a compromise at the notary? Wherever you are, one thing is certain, you need a mortgage of 300,000 euros to finance this acquisition.

If your salary will of course play for the bank to grant or refuse your mortgage, it is above all your borrowing capacity and your debt ratio that it will examine. Explanations …

Examples of salary to borrow 300,000 euros depending on the duration of the loan

First of all, if it is a principal residence, know that the legislator has relaxed access to the loan. Thus, your mortgage can be accepted if your debt ratio does not exceed 35%. For a second home or a rental investment, your debt ratio must not exceed 33%.

To calculate your debt ratio, the bank takes stock of your charges (bank loans, alimony paid, etc.) on the one hand, and your income on the other (wages, salaries, alimony received, family allowances, etc.) income from movable property, etc.). It takes into account all the resources of the household taking out the loan.

Thus, if the borrower has a co-borrower (married couple for example), he increases his chances of accessing the loan since the bank can take into consideration several incomes and correspondingly increase the amount of the loan.

Then, the shorter your mortgage loan period, the higher your monthly payments. On the other hand, the overall cost of your loan is more interesting. We start with a simple example to find out the minimum wage you will need to borrow.

They are Maxime and Adeline, married and without children, with no outstanding credit, who need a loan of 300,000 euros to buy their apartment in the Paris region in order to live there. Or Stéphane, a single executive, without current loans, who needs the same amount to finance a small building in the countryside as part of a rental investment.

term of the loan

(10 to 25 years old)

Monthly loan payment

(at the average rate observed in February 2021)

Minimum wage

(Principal residence)

Maximum salary

(second home or rental investment)

10 years (120 months)

€ 2,670

€ 7,628

€ 8,091

15 years (180 months)

€ 1,860

€ 5,314

€ 5,636

20 years (240 months)

€ 1,470

€ 4,200

€ 4,455

25 years (300 months)

€ 1,250

€ 3,571

€ 3,788

Reading this table, we understand that the minimum wage to have to borrow 300,000 euros is nearly 3,600 euros for a main residence, and nearly 3,800 euros for a second home.

These amounts can of course be revised upwards or downwards depending on the current interest rates on the one hand, and depending on the banking negotiations on the other hand.

However, even if your salary is sufficient to borrow, the banking establishment will focus on your entire loan file, and check other elements than your borrowing capacity and your debt ratio.

Criteria other than the salary for a mortgage of 300,000 euros

The notion of “salary”

First of all, the concept of salary, as we have seen previously, is not sufficient on its own. Indeed, it is all of your income that the bank will take into account. While there is certainly a salary, other methods of remuneration (dividends, rents, pensions, family allowances) may be taken into account.

For remuneration to be retained by the financial institution, it is essential that it be regular and certain. Each bank retains its own method of calculation and can choose to take into account all of this additional income, a certain percentage of this income only, or simply to discard them.

The notion of stability

Even with a high income, it is essential to respect certain criteria showing your professional stability over time. Thus, if the profiles of civil servant, permanent employee or liberal profession are appreciated, the other borrower profiles also have their chances.

To do this, they will have to demonstrate that their income has been stable or increasing for at least 3 years. This may be the case for employees on fixed-term contracts, temporary workers, traders and craftsmen. They will therefore have to produce pay slips without interruption, or accounting statements in support of their loan file.

Personal contribution

To borrow up to 300,000 euros, it is fashionable to offer a personal contribution to increase your chances of success with the bank. This contribution must be at least 10% of the overall cost of the acquisition.

In other words, for a global acquisition of an amount of 330,000 euros, count 30,000 euros of personal contribution and 300,000 euros of mortgage. These 10% are used to pay ancillary costs (bank file fees, real estate agency fees, brokerage fees, notary fees, etc.).

Financial management

This criterion is quite simple to meet, but not all borrowers are aware of it. Also, you must show impeccable bank accounts over the past three months before going to meet the banker.

Understand: no intervention commissions, no direct debit rejection, no overdraft (even authorized). The icing on the cake, if you have savings aside (bank books, life insurance, securities account, PER, etc.), do not hesitate to let it know.

How to obtain the sum of 300,000 euros for a mortgage?

You will understand, the concept of salary is an essential element for the granting of a mortgage, but it is far from sufficient. It is a set of criteria that will be examined by the bank.

To put the odds on your side and borrow 300,000 euros under the best conditions, you have two solutions. The first is to use a broker. The second, use an online simulator to canvass the banks most likely to follow you in your real estate project!