If you’re in the market for a new home, chances are one of your key questions is ‘How much can I borrow?’
There’s no single answer because this is one area where lenders – and the different approaches they take – vary widely. Watch this quick video for more.
Let's say your borrowing capacity calculation came back at $350,000.
On a principal and interest loan at a 6% interest rate for 30 years, the repayments will come in at $2,098.43 each month.
If your budget reveals that you're only saving $2,000 per month after all the regular bills and expenses are paid, you should look at where you can make savings, or reduce the amount you're looking to borrow.
To understand what you can afford to buy, it is important to know what your deposit will be. When you're saving for your home loan deposit, it's great to aim for at least 5%. Make sure to factor in more than just the price of your dream home.
Whether you’ve got no money put aside for your deposit, or you’ve been saving for years, we can help you evaluate your options. Some lenders will even allow you to buy a property with no or very little genuine savings, when a family member acts as a security guarantor.
We can help get you on the right track and into the property market sooner. Watch this quick video to find out how.
Purchasing your first property can be an overwhelming process and there may be steps you are unsure or unaware aware of. This guide will walk you through all of the steps involved in the buying process.
