Planning the purchase of a home requires more than just finding the right property. One of the most important factors is the level of prior savings, as it determines not only the possibility of securing a mortgage, but also the terms of the mortgage itself.
At most financial institutions, standard financing covers about 80% of the home's value. This means that the buyer must contribute approximately 20% as a down payment. However, this is not the only expense to consider.
In addition to this percentage, you must factor in the costs associated with the purchase, which typically range from an additional 10% to 12%. These include taxes, notary fees, land registry fees, administrative agency fees, and other administrative expenses. Therefore, the recommended total savings are usually between 30% and 35% of the property’s value.
Having this level of savings not only facilitates access to the mortgage, but also improves the buyer's position vis-à-vis the bank. Lenders view applicants who demonstrate a savings capacity positively, as this reflects financial stability and lower risk.
In addition to the initial capital, it is advisable to have an emergency fund equivalent to three to six months' worth of expenses. This financial cushion provides security against unforeseen events such as job changes or unexpected expenses.
Another key factor is the relationship between income and mortgage payments. Banks typically recommend that monthly mortgage payments not exceed 30–35% of net income, which ensures greater long-term financial stability.
It is important to understand not only how much needs to be saved, but also how to structure the family finances to improve the mortgage profile and access better terms.
