July RBA update – Borrowing Capacity
The Reserve Bank has kept rates on hold this month which for many is no surprise.
With interest rates at record lows in Australia, we are finding investors are strongly present buying and negotiating hard in today’s market.
Borrowing Capacity – A common question asked by many borrowers is ‘how much can I borrow’ based on their current financial situation. The mistake many people make is they end up buying property based on their max borrowing ability instead of their needs! E.g. A couple have $80k in savings, start out looking for a home worth $500k which is within their means, once told their income allows them to borrow up to $800k, they make the mistake of buying in the higher range without considering their possible future changes with their income levels which could result in financial hardship.
Just because you are earning enough money to be able to borrow more money does not mean it is good practice to actually do so, especially if you know your plans may change if you decide to start a family or have travel plans on the agenda.
As an accredited mortgage broker, my role is to help you avoid this from the outset by advising you accordingly based on your own personal individual needs.
Call me to arrange a time to discuss your personal needs now on 0438 041 111
As always, enjoy life, work hard, play safe and remember that we are always here to help you
‘Take the Confusion Out of Lending’
Peter Vinci - 0438 041 111