FAQ

What is the income test/loan-to-income (LTI) and what are the exceptions?

The income test/loan-to-income indicates how much you are allowed to borrow in relation to your income. The income test uses the so-called financing burden percentages.

The maximum financing burden percentages are set by law. These financing burden percentages indicate the maximum part of your income you can use to pay the housing costs (the gross mortgage costs). The financing cost percentages vary with income and interest rates. The higher your income, the more you can borrow.

Your fixed and stable income, such as the gross salary, is used to determine the amount of the loan. If you do not have a permanent job, for example because you work as a freelancer, self-employed person, entrepreneur or contractor, the mortgage provider will look at the stability of the income.

In addition to income, the provider can also take into account income from savings and a structural increase in income that will take effect within a reasonable period of time.

The law also stipulates that mortgage providers may deviate from the maximum financing burden percentages, as long as this leads to responsible lending.