Menu
Menu
Becoming a homeowner is an exciting journey. You get to inspect potential properties, go to open houses and eventually find your dream home that you could see yourself living in.
However, you need to be realistic and still manage your capital alongside paying off your home loan. To accomplish this, there are few things to consider, including your borrowing options, personal finances and the total costs of buying.
Your income and ongoing expenses are the most critical factors in identifying your borrowing capacity on the home loan. As a general rule, it is best if your repayments do not exceed thirty per cent of your after-tax salary.
If you are self-employed, you may not have regular payslips. In such a case, it is advisable to consult with a home lending specialist. He or she will look at how your business is performing financially to evaluate your borrowing capacity. Also, they can help you with the application process and answer any questions you may have.
What you can afford depends on your current income and what you spend out of that. It is all about your incoming versus outgoing capital.
Your next step should be making a “Budget” and start to consolidate your spending.
Your Debt-To-Income (DTI) ratio needs you to figure out all your monthly debt repayments (credit card bills, car loan and future loan payments) and divide it by your gross monthly earnings (before taxes).
The lower your DTI, means more financing options are accessible to you.
Banks will want to know about your ongoing debts to learn your situation and helps them evaluate your borrowing capacity and mortgage application approval.
Every situation is different, and our advice is to consult with a lending expert who can help you reach homeownership goals.
Having a bigger house deposit will increase the amount you can borrow and cut down your mortgage quicker. Reducing your monthly expenses is one way to save. At the same time, any financial gift from your parents can help increase your deposit, or you can use the equity on your current property.
Note: If you manage to pay 20 per cent of the house deposit, you can avoid an added expense of the Lender’s Mortgage Insurance.
A handful of factors come into borrowing money, and one of them is “credit score”, which is often overlooked.
The lender will look at whether you have been on top of your past payments. Hence, it is essential to remove any credit card that you no longer using and review your overall financial situation.
Connect over a no-obligation phone chat with our Home Lending Specialist to discuss how much you can afford for a home. We understand that every person is different, and so their circumstances.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”