Better choices for a better life
We answer your commonly asked financial questions in Money Chat, our new series of easy to understand one minute videos.
Learn about everything from property investment to Self Managed Super Funds.
How much money will you have in retirement - and will it be enough?
Try our calculator to see how your retirement is shaping up.
Find out from our advisers why they joined Mortgage Choice Financial Planning and what sets us apart.
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Mortgage Choice now offers a Platinum Card that makes your spending work harder for you.
Before you start on the adventure of looking for your dream home, there are two key questions that need to be answered – what can you afford to borrow, and what can you afford to repay?
With pre-approval in place, you can be more confident of your purchase limit and that you really are able to buy. Having a loan pre-approved (typically valid for 3 months) is especially handy at an auction.
Your borrowing power is typically based on your income, debts, financial commitments, credit history, loan type, employment history, savings, stability of residence and assets.
Your Mortgage Choice broker can take you through all the available options and a borrowing eligibility assessment so you’ll have a clear idea of what you can afford.
It’ll help you see what you’re spending, where you can save, and what could afford to repay every fortnight/month – note that this figure ultimately should be your guide for how much you should borrow, no matter how much you can afford to borrow.
Factor in potential events such as interest rate rises, work changes or even accidents, and plan for a financial buffer. Ideally you should always have some spare cash to stash away after paying all the bills (including the mortgage). As a guide, your mortgage repayments should not exceed 30% of your gross (pre-tax) income.
Want to find out more about balancing your borrowing capacity with what you can comfortably afford? Your Mortgage Choice broker can chat through the options available and give you expert advice.