The higher the borrowed funds relative to money, more insecure new Korhonens is always to rising interest rates. Eg, when it comes to an enthusiastic annuity loan off EUR two hundred,000 (we.e. if the mortgage-to-money ratio try 500%), debt solution can cost you manage currently bring almost 40% of household’s month-to-month income should your interest rate had been six% together with mortgage readiness twenty five years.
Additionally, this new Korhonens’ economic margin might possibly be huge in the event your very first financing was in fact less prior to the new household’s money and you can part of the mortgage was in fact paid off through to the interest rate increases. Read more