Borrowing capacity indicator

The borrowing capacity approach estimates house prices based on the maximum attainable volume of loan(s) for a household, with respect to its structure, disposable income and savings, as well as market interest rates, loan maturity, the size of the mortgage payments and applicable borrower-based measures at the time. Housing affordability is assessed by comparing the estimated and the realized price of real estates in a given quarter.. The closer the house price is to the estimated price, the more an average household needs to go to the given limits to get a loan that enables to buy an average property.