Working our what your can afford

09th Jun, 2017 | Local News

In this article:
How much can I borrow? Peter gives you his borrowing advice for buying your first home

Peter Bennet

Once your savings plan is tracking along, the next step is to figure out how much you can afford to borrow. At Yellow Brick Road Coburg we know that buying your home is likely to be one of the most expensive purchases you’ll make in your lifetime, so you need to know your limit. You can use our calculator to work it out.

Of course, as interest rates are variable and change over time, this should only be used as a general guide. It’s also worth noting that rates are at historically low levels right now, so you need to factor in interest rate rises over your loan period. Generally speaking 2-3% above the current rate is a good estimate to go by.

Make sure you factor in stamp duty – an upfront charge which is applied by state governments in Australia in relation to the transfer of land or property – by using our stamp duty calculator. Charges differ state by state.

Finally, make sure you get some solid financial advice before you sign anything! Make an appointment at your local Yellow Brick Road Coburg branch and speak to one of our friendly and experienced mortgage brokers to find out how you can save on your first home.

We have you covered on all stages of your property journey