How much can I borrow? – This is the most common question asked when it comes to buying a house.
We’ll pop our mortgage calculator below.. This is great to use as a guide, but lets be honest, knowing how much you can actually borrow is not that simple.
First of all, I would recommend contact the team here at Nectar Home Loans Hunter and we can do a quick servicing calculator over the phone.
Things that come into account are not just your income, there are various factors such as:
- Your Deposit, How much deposit is a huge factor on how much the banks will lend you.
- Your Income, yes we know it depends on what you earn. But are you full time and permanent or are you casual making most of your hours on overtime and bonuses? We may need to break it all down to find out how much will be considered as annual income with the lender. If you are self employed we’ll need to see your last 2 financial years.
- Your marital status, if you are single, Defacto, married or separated – This could change the outcome both ways, eg you may have a working partner this could mean additional income to the application, however if your partner has debt or other liabilities these could affect the outcome of your loan.
- If you have dependants – We all know they cost money, however even if your the most frugal spenders this will impact your borrowing capacity
- Your other debts/liabilities, Whether its car loans, tax bills, student debt, credit cards or those sneaky after pay & zippay store credits these will be taken into consideration when applying for your home loan.
- If you own property already, The value of the property obviously is important and we can organise a valuation for you, as this could affect your lending ability. If you own other properties outright you could structure your loans to use equity and so they work best for you.
- Your Age, How many working years do you have left until retirement age? Whilst lenders cannot discriminate against borrowers based on age, we need to know that you are able to fulfil your mortgage repayments and term without financial hardship.
- Your Credit History, If you have a habit of missing repayments on your bills or current loans this can deter lenders from dealing with you. There are options though if you are trying to debt consolidate, but don’t expect the sharpest interest rates on the market.
This is why we do, what we call, a Fact Find to start the process. We find out all the relevant information so we can collect all the necessary document and review it so we know the best lender to go with for your circumstance.
Once we have all of the information we can do some accurate calculations based on your income, liabilities, credit report and advise you with the lenders who will offer your you and your circumstance the best deal.
Remember, just because a lender is offering a really amazing deal, doesn’t mean that you will be eligible for that product or rate – this is why speaking to a mortgage broker who has access to a panel of over 30 lenders and their products is the smart option to ensure that you are getting the right loan that is best for you.
Book an appointment to speak with Ben Eick and the team today
