Nov 15 2017

Mortgage Affordability Calculator – How Much Can I Borrow? #government #loans

#home loans calculator

Your income is the key to how much you can borrow

One of the first questions asked my most people when taking out a home loan in Australia is “How much can I borrow?”

Your income is the key to how much you can borrow. Your home loan lender will look at the amount of income you earn but also the type and regularity. Part-time earnings or overtime will be viewed more favourably if earned consistently over an extended time. There are also several other things to consider including:

  • Present expenses and debts
  • Your borrowing habits
  • The purpose of the loan
  • Location and property type
  • Interest rate and loan term
  • The amount of deposit

As a rough guide, when taking out a home loan in Australia, you can generally borrow between three and four times your total gross income, although it will vary on a case by case basis. The first step is to obtain a home loan quote from your lender. This will help if you are going to auction or need to figure out how much to save for your new home.

Written by CREDIT

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