Mortgage credit: how much should I earn to access a loan to buy a home?

Only in Lima and Callao, around 600,000 families are looking to buy a home and the offer that is presented in the market is 43,000, according to data from Urbana Peru. However, from this potential demand to acquire a property, some people have the doubt of how much they must earn in salary to be able to qualify for a loan to buy a home.

In this regard, the general manager of the Mivivienda Fund, José Carlos Forero, explained that the minimum income will depend largely on the value of the property and the risk profile according to the rating of the financial entity that will grant the mortgage loan. However, he specified that the average fee/income ratio evaluated by banks is 30%.

“They always have to take into consideration that the bank evaluates a fee/income ratio, what they evaluate is how much of your net income you can use for your home loan. Or in other words, what you can borrow, how much of your monthly money you could take on the debt. You can have up to 30% of your income to have a credit: what you earn in net, you get 30%, and that could be your quota, “he explained.

As an example, Forero specified that For a home of S / 200,000, the mortgage loan fee could come out about S/ 1,200 to S/ 1,400. For this case, he pointed out that the person would have to win plus or minus a net of S/ 4,000.

The Mivivienda Fund official clarified that that amount of monthly net income can be considered between one or two people, depending on the number of owners who decide to buy the home. In other words, taking the previous case, if they are a couple, each one could earn S/ 2,000, or any formula in which the amount adds up to S/ 4,000.

For his part, Humberto Marín, commercial manager of Urbana Peru, indicated that some banks evaluate that between 40% and 50% of the monthly income of the family group or individual interested in acquiring a mortgage loan be allocated.

“The credit evaluation through the Mivivienda Fund is simpler. It will depend a lot on the value of the property, if they are looking for one through the Mivivienda credit, on average they should be earning S/ 5,000 individually or jointly, since the fee is on average between S/ 2,000 to S/ 2,500. The evaluation of 40% to 50% of income as debt capacity for a real estate fee is taken into consideration,” said the executive.

Advantages of the mortgage loan with the New Mivivienda Credit

Forero explained that when requesting the New Mivivienda Credit, through the Mivivienda Fund, the user receives a series of facilities that seek to promote the purchase of a property between S/61,200 to S/436,100.

With the arrival of the pandemic, it was decided to reduce the minimum payment of the initial fee from 10% to 7.5% at the time of requesting the mortgage loan, a measure that is still in force.

“It was taken into account from the pandemic because we considered that it had reduced the purchasing power and savings of families, and that caused us to drop to 7.5%, that is going to stay that way,” the official emphasized.

Another measure that was ordered was to expand up to 25 years the term to pay mortgage loans; before it was at maximum 20 years.

Also, he indicated that the credit rate is fixed and in soles. “When you take out a normal mortgage loan anywhere, the rate can be variable depending on the situation in the country, the bank can change the rate at any time. In the case of the Mivivienda credit, the rate is fixed and in soles, they cannot move the rate”, he emphasized.

Another feature that was arranged to capture sales is to give up to six months grace period. “That benefits the family a lot because if they continue to pay rent and the project is not over yet, then they have 6 months to start paying,” Forero said.

And finally, the incentives most demanded by users are subsidies which is granted through the New Mivivienda Credit. The Good Payer Bonus ranges from S/10,800 to S/25,700 depending on the value of the property, which can vary between S/65,200 to S/343,900. Added to this is the so-called Green Bond of S/5,400 if the house you want to acquire is a “sustainable project”.

How do I know if I qualify for a mortgage loan?

According to the portal comparabien.com.pe, to know if you qualify for a mortgage loan, you must meet the following general requirements:

• Be of age
• Be on the payroll for at least 6 months
• Have between 7.5% to 20% of the value of the home for the initial fee
• have a bank account
• Not being reported in risk centers; that is, have a good credit history
• Have your valid ID
• Have a study certificate
• self-assessment
• Have your pay slip for the last three months