Working out what you can afford

24th May, 2017 | Local News

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

Warren West

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 Melton 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.

Also don’t forget to factor in stamp duty – an upfront charge which is applied by state governments in Australia in relation to the transfer of land or property. Stamp duty costs differ state by state, you can use our stamp duty calculator to make sure you’re paying the right amount.

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. At Yellow Brick Road Melton our mortgage brokers strive to give you the best advice for your situation.

We have you covered on all stages of your property journey