A guide to buying your first home
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.
HOW MUCH CAN YOU COMFORTABLY AFFORD?
A lending institution will apply a ‘Qualifying Ratio’, which is the percentage of a home buyer’s gross income that can be prudently allocated for debt, based on personal income. As a general guide, lenders limit the total sum of monthly mortgage principal, interest, tax and insurance payments to 28 per cent of the borrower’s gross monthly income. Furthermore, they may limit the total of all long-term debt payments to 36 per cent of the borrower’s gross monthly income.