Does leasing a car affect your mortgage?
Are you considering leasing a car and wondering if it will affect your mortgage options? In this blog, you’ll discover how leasing a car can influence your mortgage, how a BKR registration works, and get useful tips to make the right decision. Whether you’re looking to lease a car, buy a house (or both!), we’re here to help you take the right steps.
What is a lease car?
A lease car is a contract where you rent a car for a longer period, usually 24, 36, or 48 months. You pay a fixed monthly fee for using the car, which often includes maintenance, insurance, and road tax. Leasing offers convenience as you don’t have to manage these aspects yourself and you avoid a large financial investment. However, it also comes with financial obligations.
The impact of a lease car on your mortgage options
Lease car & BKR registration
When entering a lease contract, you’ll receive a registration at the Bureau Krediet Registratie (BKR). This is because a lease contract is seen as a financial commitment. A BKR registration records your loans and financial obligations, such as credits and lease contracts. Banks and mortgage lenders use this information when issuing loans, for instance, to assess whether or not you can afford a mortgage.
Impact of a lease car on your mortgage
A lease car can reduce your borrowing capacity for a mortgage. For example, if you have a lease contract for 60 months at €400 per month, and you and your partner have a combined annual income of €70,000, this could mean that due to the lease contract and BKR registration, you may be able to borrow up to €80,000 less. This amount is deducted from the maximum mortgage amount you can borrow. As a result, you can borrow less for your home than you could without a lease car.
Tips for leasing a car and applying for a mortgage
If you’re considering leasing a car while applying for a mortgage, here are some tips to keep in mind:
- Evaluate your financial situation: Assess your current and expected future financial situation carefully before entering into a lease contract.
- Consider a car subscription: A car subscription, like KINTO Flex, offers flexibility without a BKR registration. This can be valuable if you plan to apply for a mortgage soon.
- Plan ahead: If you know you’ll be buying a house within a few years, consider delaying entering into a lease contract or choose for a short-term contract.
What is a car subscription?
A car subscription is a flexible way to use a car without the long-term commitments of a lease contract. With a car subscription, you can cancel on a month-to-month basis after a short minimum term, and there’s no BKR registration. This makes it an ideal option if you want flexibility without limiting your mortgage options. Want to know more? Read about KINTO Flex.
Are you interested? Then build your own car subscription right away and discover the freedom and flexibility of KINTO Flex.
For more information about our car subscriptions and to see which model best suits you, view our available subscriptions.