How Much Can I Afford To Spend On My First Home?
If this is your first foray into the residential property market, you might be wondering where to begin when it comes to setting a budget.
The trick is to ensure that your property costs and home loan repayments are manageable over the long-term, which is why it is good to begin by assessing your current financial situation.
As a first home buyer, you will want to consider your total household income, which can include your (and your partner’s) salary, as well as any income you may receive from other sources.
Next, you will want to consider your monthly outgoings. Make a list of your current payment obligations - including any car loans or credit cards - and other outgoing expenses. You might even want to estimate the costs of any monthly or quarterly bills, as well as your mobile phone plan and gym membership costs to get a full picture of your current financial situation.
It is also important to consider the size of your deposit, which can affect both the amount and term of your home loan.
A great way to get a feel for how much you can afford to borrow is to run these numbers through a mortgage calculator
A home loan calculator is a great way to work out a rough estimate of the costs associated with buying a property, so you can determine a loan amount that suits your lifestyle.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.