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How Much House Can I Afford?

TIP It is important to know what you can spend as soon as possible to guide the types of properties you visit on weekends.  Looking for a new home without a budget can be exciting, fun and make you feel like a mighty millionaire, however it also starts to create an image of what you cannot afford, which is a false economy.  A property worth $800,000 will offer more in terms of location, space and overall quality of the property. But, if you only have a budget of $500,000, then you are heading for disappointment once you start looking within a much higher price range.

How much you can spend is determined by several key factors that differ by individual.

Buying by yourself – if you are buying by yourself the amount you can borrow will be determined and restricted by your personal finances only.

Buying with somebody else – if you are buying with a partner, brother, grandmother, friend or associate, the amount you can afford to borrow will be determined by both of your personal finances.

Your Income – The more you earn, the more you can afford to repay; therefore, your income is paramount to how much you can borrow.  Your income includes all earnings including income derived from investment properties, share dividends and/or a personal business.

Your Expenses – Your expenses have a bearing on how much money you have available to make repayments. The higher your expenses the less money you have available the less you are likely to borrow.  Managing your expenses is significant when it comes to borrowing money.

Your Deposit – The size of your deposit is significant in how much you can borrow.  Assuming, your income is very high, and you manage it with moderate expenditure, then the amount available for your deposit will be a major contributing factor on how much a lender will lend you.

Your deposit can be expressed as a percentage of the total price of the property. Most lenders require a minimum deposit of 10% of the purchase price of the property, in order to provide the remaining 90% of the purchase price of the property.

TIP When your deposit is less than 20% of the property purchase price, the lender will most likely require you to pay Lenders Mortgage Insurance (LMI). By having a deposit larger than 20% you can wave the need to pay (LMI).

First Home Owners’ Grant – The First Home Owners’ Grant is a one-off grant that is payable to first home buyers that satisfy all the eligibility criteria. The criteria for qualifying are different by state, so it’s important that you seek the necessary information and establish if you are eligible.  You can obtain information from the Government site http://www. firsthome.gov.au/

A Mortgage Broker is often the best person to speak to with respect to how much you can spend on a new home. There is no harm in doing this early after deciding to buy a property as it allows you time to visit open homes in your price range to satisfy yourselves that this properties in this price range appeal to you.

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Why Choose Brisbane Home Loans

You're In Good Hands

Brisbane Home Loans is all about good old fashioned personal service without exception.

We Find The Right Deal For You

We take the time to listen to your needs and then search the market for the best products that satisfies your needs at the lowest possible cost to you.

Ongoing Comittment

We continue to work for you after the deal is finished, ensuring that we asess any new offers that become available which may improve your current deal.

One Stop Lending

We give our clients access to Personal Loans, Home Loans, Investment Loans and Commercial Loans.  You always only deal with on person for all your lending services.

How We Work With Our Clients

We can meet clients in our office, in their home, their office or the local coffee shop. Our initial interview will helps us understand the clients needs in the short, medium and long term so that we can find the best possible lender for your loan.

The world of financing continues to be more and more complicated. Our Lenders have experience in finding the right product to meet the specific needs of each of our clients.  During this phase, we identify two to three options that may be suitable.

Our Lending Specialists will present to you a number of options available outlining  the differences, benefits and downfalls of each option presented. Our preferred option and reasons why, we consider this the best fit for you will be clearly explained.

Our Lending Specialists work with our clients to have all documentsation signed, submitted to the lending institution and processed through to approval.

We pride outselves on client service which is why our Lending Specialists establish a reasonable review timeframe where they touch base with our Clients to ensure everything is working as planned.  During this review, the client is made aware of any new financing options in the market.

Brisbane Home Loans is not about one off loans. We truly care about our clients, which is why we stand by their side beyond the completion of the loan.

What Does A Mortgage Broker Do

Listen and Evaluate Your Needs
Calculate How Much You Can Borrow
Compare Options Available to You in The Market
Provide You Expert Advice
Do All The Leg Work
Obtain Pre-Approval For You
Create A Plan For You To Ensure Your Always Getting The Best Deal
Most Importantly We Provide This at No Cost To You

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