Working out what you can afford

26th Apr, 2017 | Local News

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

David Evans

Once your savings plan is tracking along, the next step is to figure out what you can afford to borrow. We know at Yellow Brick Road South Morang that buying your home is likely the most expensive purchase you’ll make in your lifetime, so you need to know your limit. 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 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 talk to your mortgage broker before you sign up for anything. It’s always important to be as informed as possible before you make any big financial decisions and at Yellow Brick Road South Morang our mortgage brokers strive to give you the best advice for your situation.

We have you covered on all stages of your property journey