But first things first, it’s good to know how to determine how much you can afford, to find the perfect home in your price range.
How do you find out your price range?
You need to be realistic and still manage your money alongside paying off a mortgage. To do this, there are a few things to take into consideration including your personal finances, borrowing options and the total costs of buying.
We’ve put together some questions you’ll need to ask yourself alongside some handy info to get you started on your home buying journey.
First, let’s talk income
Is your income regular or irregular?
It’s important to consider your income situation and whether you could sustain mortgage repayments if you don’t have regular income. Whether you’re self-employed, working part time or full time or in any other situation, you need to dive into your income situation.
How much can you put aside with your income?
With your current income, how much would you feel comfortable with paying monthly towards your mortgage? A quick look at our calculators can show you how much you could borrow, as well as how much your home loan repayments would be.
Once you know this rough figure, consider if you’d be able to live with your income minus that amount.
A look into debt
Are you paying off a car, credit card debts, student loans or any other forms of debt? Lenders will want to know about your existing debt to understand your situation and help them determine whether to approve your home loan application as well as how much you could borrow.
Every situation is different, and if you find yourself asking ‘Should I pay off my debts first, or save for a home deposit?’ the answer would be different depending on who’s asking. Our advice would be to chat to someone who could help. After all, Mortgage Choice experts are there for that very reason, to help you reach your home ownership goals. They can help determine where you stand financially and what your next steps are.