Buying an Apartment with a Mortgage May Be a Burden: What to Consider Before Purchasing

A mortgage may seem affordable if the monthly payment fits into the budget. However, before buying an apartment, you should understand whether the family is ready for such an obligation for years and how much money will remain after purchasing the home.

When to consider purchasing housing with a mortgage

As Taras Kozak, founder and president of the investment group UNIVER, told RBC-Ukraine, a home loan makes more sense if a person does not plan to move to another city or change apartments in the near future.

It is also important how suitable the home is for long-term living—in terms of location, area, and the family's needs. One of the expert's benchmarks is the willingness to live in the apartment for another about 10 years. If it is already clear that in a few years the property will be too small or a move will be necessary, the decision to buy should be carefully weighed.

Before taking a mortgage, assess how stable incomes will be in the coming years. It matters not only whether there is enough money for the payment now, but also whether the family will be able to make it regularly in the future.

What to consider in the budget before securing a mortgage

The monthly payment is only part of future expenses. After purchasing the apartment, money may be needed for repairs, furniture, and setup. When calculating, also include taxes and other costs that come with owning a home.

If after buying the apartment you need to take out another large loan for repairs or furniture, the burden on the family budget can rise significantly. Therefore, it is better to calculate in advance how much money will be left after the purchase itself.

According to the expert's approximate guideline, no more than 30% of monthly income should go toward a mortgage. At the same time, do not plan the budget too tightly. After purchasing and furnishing the apartment, the family should not deplete all savings.

The budget should also withstand a possible drop in income. If even a small decrease makes the loan payment problematic, the risk grows that the apartment will have to be sold hastily and not at the best price.

As a reminder, after purchasing an apartment you will need to separately pay for the registration of ownership rights and notary services. The cost of registration depends on the urgency, and private notaries set their own rates.