How much money do you have to save to buy a home?
The average in Spain indicates that around €45,000 is needed to buy a home. Obviously this amount depends on the value of the home and the percentage of financing granted by the bank. Although this IT IS NOT ENTIRELY TRUE
But we give you the keys so that you know approximately the amount of input you need.
How much money saved do I have to contribute to buy?
The first thing you have to find out is the value of the home you are going to buy, what the sales costs are and what percentage of the mortgage your bank grants you.
The higher the mortgage percentage the bank gives you, the less money you will have to contribute from your savings. So it may be advisable for you to apply for a 100% mortgage.
That way, you will only have to contribute the purchase expenses, which depend on the client and the purchase value, but which usually range between 7 – 12% of the sale price.
If the bank financed you 90%, to that amount you would have to add the 10% that the bank does not finance. If the mortgage was 80%, you would have to contribute a total of 30% of the purchase value.
Example of savings contributed for the purchase
Let's imagine that we buy a home for €100,000, that the bank gives us a 90% mortgage and the expenses are 10% of the value of the apartment.
In this case we would need €100,000 for the purchase and €10,000 for expenses, making a total of €110,000.
If the bank gives us €90,000, that is, 90%, we will have to put a total of €20,000 from our savings to buy the home.
What happens if I don't have savings for the purchase?
One of the main problems that buyers have is the lack of savings to buy. Job instability and low salaries make it very difficult to have savings every month.
For this reason, many customers look for ways to finance the entire purchase and not put money out of their own pockets, although it is sometimes more difficult.
The maximum that a bank can finance you is 100% of the purchase, having to contribute only for the sales costs.
If you do not have enough money for these expenses, you can choose to request a personal loan, provide a guarantee with double guarantee or ask a family member for it.
Whatever your choice, you will see that the best way to buy a home is to have at least 20% of the purchase value. This way you will ensure a mortgage in the best conditions and a comfortable payment to pay.
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