How Much You Can Borrow For Your First Home?
Before you talk to your mortgage broker or lender about a home loan, get an idea of how much you can afford to borrow and repay.
Work out what type of home you are buying
You must do some research on what type of home you want to purchase and where you want to live. This plan will give you an idea of how much you might need to borrow. This decision-making process also involves whether to build a new house or buy an existing one. Get an idea of how much you could borrow
Get an idea of how much you could borrow
Once you know how much it might cost to buy or build a home, do some math to see how much you could borrow. It means calculating an approximate amount of loan as a starting point. This strategy will help you work out approximate repayment to add to your budget.
Get an idea of how much you can repay
What size home loan will fit your budget? Home Loan EMI Calculators are the best place to start working this out. Try a few different scenarios – smaller and bigger loans; lower and higher interest rates – to see how they can affect your budget. It’s good to have some room to move in case your expenses go up in the future. Work out your deposit Working out your deposit
Work out your deposit
Your deposit amount is based on following things:
- The value of properties you’re looking at
- Whether you are eligible for the first house owner grant and how much you get There will also be other costs you need to do saving for, like your first month’s loan repayment and moving cost.
Hopefully, this gives you an idea of how much you can borrow and repay based on review of your budget and some high-level information. The next steps involve speaking to your lender about what they’re prepared to lend you. You can seek help from a Financial Advisor, who will help make arrangements with lending institutes.