According to research by internationally renowned economists, the general mortgage loan cannot exceed 30% of the family's income and expenditure. That is to say, before taking out a loan to buy a house, the borrower must consider the future repayment pressure. If the monthly repayment expenditure exceeds more than 30% of the household income and expenditure during the future mortgage period, then it is not suitable for a loan to buy a house. Considering that Chinese people are relatively frugal and love to save, it can be raised appropriately, but the monthly mortgage repayment cannot exceed 50% of income and expenditure.

It is recommended that the monthly mortgage payment should account for 40% of the income, because for single home buyers who are working, they have less family pressure and have greater potential for appreciation at a young age. They can consider setting the monthly mortgage payment at 40%. Come on, maybe even a little higher. This puts more pressure on yourself, and pressure becomes motivation. As your income becomes higher and higher, the proportion of your monthly mortgage payment will become smaller and smaller. It is recommended that the monthly mortgage payment should account for 20%-35% of the income, because for home buyers with families and children, the family pressure is greater, and the family's daily living expenses and children's education and health are relatively high. If the family's expenses are relatively large, it is recommended to be around 30%, but if you want a little more every month, it should not exceed 50%.

Notes:

Using household income as the unit of measurement for planning, the proportion of monthly mortgage payment to income should have three golden lines:

1. Comfort Line, the mortgage loan accounts for about 20% of the income

For a family, if the monthly income is 10,000 yuan and the mortgage loan accounts for 2,000 yuan, the remaining 8,000 yuan can be used for other expenses, which is relatively comfortable and has a good impact on life. The impact won't be too big. It should be said that the ratio of housing loan to income is 20%, which is quite comfortable.

2. Stable line, mortgage loan accounts for 20%-35% of income

At this ratio, although it may affect the family’s higher quality of life, considering the appreciation of the house and the income Growth potential and other factors, normal life can still be maintained, and the family's material property is relatively stable at this time.

3. Warning line: mortgage loan accounts for more than 40% of income

According to the national commercial housing personal loan regulations, if the mortgage loan accounts for more than 50% of monthly income, the loan conditions are not met; 40%, it enters the warning line. At this time, the monthly payment ratio is too high, which poses a great challenge to the maintenance of family life and may result in non-performing bank loans.

In summary: After confirming the loan to buy a house, the house buyer must choose a repayment method that suits him. There are two general repayment methods: equal principal and interest and equal principal. Equal-amount principal is more suitable for borrowers with strong repayment ability some time ago, and home buyers should choose based on their own needs.

Legal basis:

"Notice of the State Council on Issuing Interim Measures for Special Additional Deductions for Individual Income Tax" (Guofa [2018] No. 41):

Tenth Article 4 If a taxpayer or his or her spouse uses a commercial bank or housing provident fund personal housing loan alone or jointly to purchase a house in China for himself or his spouse, the interest expenditure on the first housing loan incurred in the year in which the loan interest is actually incurred shall be calculated according to the A standard fixed deduction of RMB 1,000 per month is provided, and the deduction period shall not exceed 240 months. Taxpayers can only enjoy a one-time deduction for interest on their first home loan.