As you can see, a larger number of children directly translates into a decrease in creditworthiness. The least noticeable change related to the size of the family took place in the case of USD loans. In this case, a family of five may have a debt of one-seventh lower than a childless marriage.
For loans in dollars and Swiss franc, this capacity decreased by around 40%. The reason for this is that, when calculating the amount for which the loan can be granted, the bank deducts from the income fixed costs that are associated with the daily functioning of the household.
The method of their estimation may differ depending on the institution
The number of people in the household allows, therefore, to estimate what the average financial surplus can be that could be used to pay off mortgage installments.
When applying for a mortgage, however, you must remember that in addition to the number of people in the household, the bank also pays attention to other factors.
Important information for financial institutions is the number of people working in a given household. In the event that only one of the spouses has a job, even despite sufficient income, the bank will be more cautious than if the income comes from two sources.
This is due to a simple calculation
If the only source of income is lost, the family may have problems paying their debts regularly. The type of work performed by borrowers and the place of employment is also important. Budget employees cannot boast of high incomes, but in their case, the probability of sudden job loss is relatively low.
In the bank’s opinion, such a person may prove to be more reliable than a client with a higher, but irregular income. From the point of view of the maximum loan amount, the form of employment is also important.
Financial institutions have the most favorable attitude towards an indefinite employment contract, which is why it will be easiest for people employed in this way to take out a mortgage.
Before granting a loan
banks also try to analyze customer spending. To this end, a common requirement is to provide a bank statement for a specific period. On this basis, the financial institution assesses the ratio of monthly expenses to inflows and estimates the probability of payment gridlocks when paying off loan installments.
The level of assumed future costs of maintaining the purchased flat also affects creditworthiness. Just having a credit card works the same way, not to mention being late. The bank also checks whether the borrower acts as a guarantor for other people’s credit obligations.
In turn, the history of cooperation with the bank may have a positive effect on the creditworthiness of a potential borrower. Having a ROR account for many years, regular repayments of previously drawn loans will undoubtedly facilitate the credit decision of a financial institution.