Should you buy alone or together?
You have been living together with your partner in a rented property for some time, but now you two are thinking of buying your own place. One of the first things to consider is: do you want a mortgage that you can still afford on one salary? Or are you going to go for a maximum mortgage based on two incomes? Or something in between?
If you buy the home on one income, the need to insure for the contingency that one of the incomes is lost is less. It can also be a good idea if you expect to be working or earning less in the future.
Buying on two incomes allows for a higher maximum mortgage (see also the financial burden rate). In that case it is advisable to take out an insurance covering the risk of losing the second income, such as life insurance or disability-mortgage protection insurance.
In any case you should discuss with your partner how much you can afford in monthly mortgage payments. This is because the maximum mortgage calculation is based on the standard norms of Nibud (National Institute for Family Finance Information). Of course, you are best placed to decide at what level of mortgage payments you still have enough money for any other financial plans you have.
Buying together? You need to decide whether to get married or opt for a different form of cohabitation. Buying together: this is what you can provide for and set down in writing. Have you not formalised your form of cohabitation yet? This is not a requirement for your mortgage application, but it is advisable to take steps if you are planning on buying a home together. There are basically three different forms you can choose from:
- Registered partnership
- Cohabitation contract
For more information and advice on what form is most suitable for you, please contact your civil-law notary.