Borrowing capacity calculator

This is the money you receive «clean» in your account each month, after your employer deducts taxes and Social Security. If your payslip is €2,500, those €2,500 are your net income. If there are two borrowers, add up both net salaries.

These are the fixed payments you already have each month: a car loan instalment, the minimum credit card payment, a lease, child support... Everything you already have to pay before the mortgage. Rent is NOT included (because you'll stop paying it once you buy).

The number of years you want to repay the mortgage over. The longer the term, the lower the monthly instalment (you spread the debt over more months), but the more interest you pay in total. In Spain it's usually between 20 and 30 years. Banks tend to set a limit so that you don't exceed 75 years of age by the time you finish paying.

This is what the bank charges you each year for lending you money, expressed as a percentage. A 3% NIR means that for every €100 you owe, the bank charges you €3 a year in interest. The lower the NIR, the cheaper your mortgage.

This is the largest amount of money a bank could lend you based on your income and debts. It's calculated by ensuring the monthly instalment doesn't exceed 35% of your net income (after subtracting your debts). It's the ceiling of what you can borrow.

This is the most you could pay each month without going over the 35% limit. It's calculated like this: your net income × 35% − your current debts. If you earn €2,500 and have no debts: 2,500 × 0.35 = €875/month as a maximum.

Banks normally lend you up to 80% of the property price (you put up the rest). So if they can lend you a maximum of €200,000, the maximum property price would be 200,000 ÷ 0.80 = €250,000.

DTI stands for «Debt-To-Income». It's the percentage of your income that goes towards paying debts. Banks usually set the limit at 35%: of every €100 you earn, no more than 35 should go to paying debts (including the mortgage). The lower it is, the better for your finances.

This is the money you put up out of your own pocket to buy the property. Banks normally lend you 80% of the price, so you must put up the remaining 20%. If the home costs €200,000, you need €40,000 as a down payment. You must have this money saved up.

On top of the down payment, there are mandatory costs: taxes (transfer tax or VAT), notary, land registry, valuation and conveyancing. They usually add up to between 10% and 15% of the property price. They are «extra» costs that the bank does not finance.

This is the sum of the down payment + the costs. It's the money you need to have saved before buying. If the home costs €200,000: down payment (40,000) + costs (~20,000) = €60,000 in savings needed.