How to work out how much you can borrow

Before viewing properties, you need to know how much you can actually spend. Your borrowing capacity depends on four parameters.

1. Your income and the debt-to-income ratio

Banks cap the share of your income that goes to loan repayments: the debt-to-income ratio. Our simulator uses a cap of 30% of net monthly income; each bank applies its own rules.

Example: with a net income of 150,000 DZD, the maximum monthly payment is 45,000 DZD.

2. The duration

The longer the duration, the lower the monthly payment — but the higher the total interest. Extending the duration therefore increases how much you can borrow, at the cost of a more expensive loan.

3. The rate

The rate sets the share of interest in each payment. One extra point of interest can noticeably reduce how much you can borrow for the same monthly payment.

4. The down payment

Your down payment reduces the amount to borrow. Banks rarely finance 100% of the price: plan a down payment, and keep enough to cover the purchase costs.

Doing the maths

The payment of a constant-payment loan is calculated from the amount borrowed, the monthly rate and the number of months. Rather than doing it by hand, use our mortgage simulator: it shows the monthly payment, the total cost, your debt-to-income ratio and the maximum you can borrow with your income.

Do not forget the purchase costs, which you can estimate with the notary fee simulator.

Simulator results are indicative: only the bank's offer is binding.