What is your borrowing power

Buying a home is about the biggest financial commitment you’ll ever have to make, so just as well it’s one of the things in life that DOES come with a guidebook!

A guide to buying your first home

Buying a home is about the biggest financial commitment you’ll ever have to make, so just as well it’s one of the things in life that DOES come with a guidebook!

As much as buying a home is an exciting turning point in your lifestyle, you certainly don’t want to make any mistakes. Our Home Buyer’s Guide is exactly what you need to get prepared and secure your perfect home, as soon as you find it.

WHAT IS YOUR BORROWING POWER?

Your borrowing power is determined by your current income and financial commitments as well as your savings and credit history. You should carefully consider your current and future living expenses so you’ll be assured you can repay your loan and maintain the quality of lifestyle you’ll require. One of the biggest initial outlays you’ll face is your deposit. This is usually 10 per cent of the purchase price but don’t forget that the deposit, like many elements of a property purchase, can be negotiated.

In addition to the purchase price of your property, you will need to pay for things like Stamp Duty (on the purchase price and the loan amount borrowed), conveyancing fees and possibly the above-mentioned mortgage insurance (if your deposit is less than 20 per cent). If you’re buying your first home, you may be entitled to valuable grants or bonuses from your State Government.