How much can I borrow?
To work out how much you can afford to borrow, use our Borrowing Power Calculator.
Or if you prefer to do your own calculations, write down all your weekly non-rent expenses, such as groceries, transport, utilities, credit card bills and personal loans. Total your weekly expenses and subtract this amount from your current net income.
Budgeting is an essential skill when you’re buying any kind of property. Working out your personal budget and sticking to it is the key to affording and maintaining a home loan. A good budget will factor in all of your regular and irregular expenses, including household essentials, debts, transport, insurance, medical costs and personal spending.
Your Tassie mortgage consultant can give you essential tips on developing a budget that will help you get on track and get organised. You can also use our Budget Planner Calculator to get a start on your personal budget.
How much deposit will I need?
The maximum loan available is 95% of the property’s value. This is called the loan to value ratio, (LVR). The LVR is not based on the purchase price of a property, but on the value set by an independent valuer engaged by the bank. Many banks currently have a maximum LVR of 90%, but you will need at least 5% of the property value as a deposit. You’ll also need to factor in additional costs associated with buying a home, when saving for your deposit.
What to take to the loan interview
Your interview with a Tassie Home Loans mortgage consultant will take around an hour. Having the right information with you will help make your loan application process simple and quick.
How does a lender assess my application?
A potential lender takes several things into consideration when assessing your loan application:
- How long you’ve been employed and whether you’re full-time, part time, permanent or casual.
- Your income and employment history
- Your savings history and current savings
- If you’re refinancing, your loan repayment history
- Your capacity to repay the home loan and meet your financial commitments
- The amount you wish to borrow, against the value of the property.
- Your level of asset accumulation
What are my financial options?
Get the right advice
As time passes your needs are likely to change, so it’s important that the loan you choose gives you the flexibility you’ll need in the future.
There are many questions to ask yourself when choosing the right home loan, including:
- What term should I consider?
- What frequency of payments should I make?
- How can I save on interest?
- What flexibility do I need?
- Is redraw available?
With so many things to consider, and so many home loan products on the market, making the right choice can be an overwhelming prospect. Getting expert advice from one of our accredited mortgage consultants will make all the difference in finding the home loan that’s right for you now, and into the future..