How Much Can I Borrow

G7 Finance

Most of us would like to live the great Australian dream by owning our own homes. And for many, there’s no reason why we couldn’t.

However, before you start dreaming of the house or suburb you’d like to live in, step back and focus on the key issue – what monthly repayment could you truly afford? It’s hard to know what you could truly afford to borrow without the right information. The finance consultants at G7 Finance could help get you on the right financial track and give you a better understanding on your circumstances.

How much could you afford to borrow?

A good way to find out how much you could afford to spend on a property is to review your household budget. If you don’t already have a budget or you would just like some advice, contact the finance consultants at G7 Finance.

We could help you figure out:

• How much you need to save towards a deposit and add in what you pay in rent, to work out how much you could afford to repay
• Work out how much you could comfortably afford to borrow without stretching your budget too far, making sure you have a buffer
• Include all the costs that come with home ownership: up-front costs like stamp duty and legal fees and lender’s mortgage insurance, as well as ongoing costs like land and water rates, house and contents insurance, and repairs

What do you need to be prepared to buy your first home?

A substantial deposit – The bigger the better when you’re saving for a home. A deposit of 20% of the purchase price plus enough to cover costs is a good goal.

A regular savings habit – A history of regular savings in your bank account and a solid track record of employment could make it easier for you to get a home loan.

Pre-approval for a loan – Compare a few different loans before you decide. Ask your G7 Finance consultant for a key facts sheet on each home loan so you could compare more easily.Once you choose the loan and have been pre-approved you’ll know what the repayments could be and how much you could afford to spend on a property.

Some additional savings – These could act as a buffer if interest rates rise and your repayments increase. Alternatively choose a loan that allows extra repayments so you could build a buffer early on.

How Can G7 Finance Help?

G7 Finance could look into your financial situation and provide you with a list of options to help you reach your financial goals. And if you’d like assistance with a loan application, we’ll examine a range of loans to find one that suits you best. Importantly, we’ll package your application in a way that could maximise your chances of success. At G7 Finance our finance consultants aren’t just salesmen, we want to offer you the best possible financing options available give us a call on 08 6144 0399.