Many house hunters will often find themselves asking the same question – how much can I borrow?
Knowing how much you can borrow allows you to focus your property search and can give you a better platform when it comes to negotiating with sellers.
The amount you can borrow depends on a number of factors such as your income, your expenses and your dependents. Enter the borrowing calculator.
A borrowing calculator is often the best tool for getting started and gives you a snapshot of your borrowing ability.
28 year old first home buyers Jade and her husband used a calculator to get a rough estimate of how much they could borrow.
“We didn’t really know what the process was or what we could afford. I’d heard of home loan calculators but I didn’t know where to find them, so I turned to Google and went from there.”
Jade says it was great to get a guide of where they were at financially.
“The calculator factored in such things as our application type, how many dependants we have, our annual income and our monthly expenses. It turned out we could borrow a lot more than we thought which gave us peace of mind before diving in to the house hunting process.”
“Often when you start to look you’re not entirely sure how much you can afford so it’s important to get an idea of how much you can borrow and whether you will be able to service the debt. A borrowing calculator definitely helps you with that.”
Would she recommend the calculator to friends?
“Definitely, it sounds slightly geeky but we actually spent a number of Saturday nights doing calculations – I think we might have even found it fun!”
Aussie has a borrowing calculator that can help get a rough estimate of how much you can borrow.* However that should only be treated as a guide and to get a fully personalised borrowing power figure Aussie recommends you request a free appointment with an expert Aussie Broker.