Nowadays it is easier as a self-employed person to apply for a mortgage to finance your dream home. But how much can you actually borrow?
When calculating a self-employed mortgage, four factors are important: your test income, the solvency and liquidity of your company and the market value of the home you have in mind. Your personal financial obligations also play a role.
Your test income: the average of three years
No two days are the same as an entrepreneur. Your income also differs from month to month and from year to year. Mortgage lenders see this as a risk and look for ways to estimate your financial strength. Not only now, but also for the entire term of the mortgage. That is why the test income is calculated on the basis of your income over the past three calendar years.
Have you been self-employed for less than three years? You can already get a mortgage from a number of mortgage lenders if you have been working as a self-employed person for at least one year. For this you must be able to provide additional information. The business calculator works perfect in this case.
The solvency and liquidity of your company
In order to calculate the mortgage for self-employed persons, mortgage providers look critically at the financial position of the company. An important aspect here is the solvency of your company. A good balance between equity and assets on the one hand and loans and debt on the other is essential for the long-term health of your business.
Minimum 25% solvency for a mortgage with NHG
For a mortgage with a National Mortgage Guarantee (NHG), the solvency of your company must be at least 25%. This means that the company’s equity capital is at least a quarter of the total balance sheet.
Liquidity must be at least 1.00
In addition, it is also important that sufficient financial resources are available in the company to be able to meet short-term obligations. This is the liquidity of your company. The ratio between the current assets and the short-term debt in your company must be at least 1.00. Finally, NHG wants you to have a positive conclusion to the last financial year.
Do you drive a company car on a private lease? A private lease contract is registered with the BKR. As a result, your mortgage will soon be tens of thousands of euros lower. Our financial expert will calculate it for you.
The market value of your home
In 2020, you can borrow a maximum of 100% of the market value for the purchase of the home. You must therefore have your own money to be able to pay the costs associated with the purchase.