Your income will determine your borrowing ability. In the old days a general rule of thumb is the bank will allow for 35% of your income to service a home loan. But this has evolved and the bank now take a very close look at your day to day expenses including credit card limits (regardless of whether you pay them off in full or not), how many motor vehicles you have, superannuation payments etc etc.
But if your repayments are within 35% of your income then that's a good start.
This varies depending on how long you fix for and what interest rates are available at the time. We prefer splitting your loan over various fixed rate terms but fixing for no longer than three years. If you fix for too long you don't end up completing regular reviews of your lending. We feel regular reviews are more important than obtaining the best fixed rate at the time.
Your future plans will also dictate the term of the fixed interest rate loan. Whether you are looking to shift, change jobs or plan to have children in a couple of years it is good for us to know. We will structure your loan based on these potential life changing scenarios!
We review your mortgage structure and complete your Fixed Rate Rollover for free!
Are you scratching your head over how much you need for a deposit? This can vary from bank to bank so it's best to call us on 0800 334 338 to discuss.
You may be ready now, or are very close! Fill out our pre-consultation form to see how you are placed and what is required to be ready for your first home deposit.