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First Home Buyers Questions and AnswersHow much can I borrow?Before you start to look for a property you will need to get an idea of how much you can afford to borrow. There are two main questions to take into consideration:
Do I need a deposit? Purchasing a property is a major financial commitment. Lenders like to see proof that you are able to put some of your own funds towards a purchase before they will lend money to you at standard rates. In general you are required to have at least 5% of the value of the property being purchased in what the lenders call “genuine savings”. Genuine savings means that you can provide evidence of a savings pattern proving that you have saved the money yourself (over a 6 month period of time). Obviously, the greater the deposit you can save the better, and deposit requirements are changing all the time. Please feel free to contact Mortgage Exchange to discuss current lender deposit requirements. Do high levels of debt affect my buying power? The more you owe in debt the less you will be able to qualify for in a home mortgage. The process of finding out how much you can qualify for involves examining your income and comparing it to your debt ratios. These are variables that help determine how much you can borrow. If you have an excessive debt ratio, this reduces the amount of home mortgage you can qualify for. By examining your credit profile, Mortgage Exchange, will be able to structure a home buying strategy. If you have credit card problems, do not be embarrassed to discuss them honestly with Mortgage Exchange. If you have credit problems you can assist the process by obtaining a copy of your credit report to assist us in determining your ability to qualify for a mortgage. Mortgage Exchange can sit down with you and examine your entire financial situation to best position you prior to submitting your loan application. We are located at: To assist you in locating us CLICK HERE for instructions. Tel: +61 (02) 4952 9910 or 1800 775555 |