When you take out a mortgage to finance your project, you will have to take into account several elements, such as your borrowing capacity or your debt ratio. But these are not the only elements that are important, since the bank will also look at the amount of your remainder to live before deciding to grant you your mortgage.
What is the rest to live for?
THE stay to live represents the amount of money you will have left to cover your daily expenses each month, after having repaid your monthly payments. By calculating it, you will be able to have a better idea of the impact that the mortgage will have on your daily life.
According to the papernest experts, your remaining living will not be the same depending on whether you borrow alone or in pairs. In the first case, only your income will be taken into account, whereas in the second case, all of the household’s monthly income will be taken into consideration.
Why is the remainder to live important for the bank?
Calculating your remaining life before taking out a mortgage is essential. Indeed, the bank wants to ensure that you can continue to repay your monthly payments even with expenses on the side.
But it is not only for the bank that the calculation of the remainder to live is important. It is also for you, since it will allow you to avoid finding yourself in a situation of over-indebtedness. As the papernest experts explain, you need to be sure you have the ability to repay your loan every month.
If, however, you find yourself in a situation of over-indebtedness, and you can no longer repay your debts, you have the option of filing an over-indebtedness file with the over-indebtedness commission through the Banque de France in your department. To find out what steps to take depending on your situation, you can consult this site.
How is the remainder to live calculated?
To calculate your remaining life, you have several options. The first is to use a simulator. This is a free tool, which you can find on the Internet, on the sites of online real estate brokers for example, or on the sites of online banks. The advantage of these simulations is that you know what elements to take into account. You are sure not to forget any.
To carry out the simulation, you will have to enter the amount of several elements, such as:
- net household wages;
- other monthly household income (benefits, bonuses, pensions, etc.);
- the repayments you make each month;
- any pensions you receive;
- the monthly charges you pay (water, electricity, gas, heating, etc.).
You can also get your remainder to live by calculating it yourself. According to the experts at papernest, to do this, you just have to apply the following formula to your situation: remaining to live = net income – expenses.