The amount you can afford to borrow is referred to as your 'borrowing capacity' and it is based on factors including:
Your local Aussie Mortgage Broker is able to give you a clear picture of your borrowing capacity before you start house hunting, and importantly, help to ensure your finance is sorted when you find your dream home. The earlier you meet with a broker, the more informed you'll be at an early stage of the moving process.
Don't base the budget for your next home only on the expected selling price of your current one - you might not get the price you want.
Your upgrading budget should also take into account the costs of selling your current home. This will shape the profit made on the sale, and therefore how much cash you can contribute to the overall purchase compared to how much you'll need to borrow.
It can be heartbreaking to find the perfect place only to learn that you can’t afford it. Even worse is losing your deposit because you won at an auction but couldn’t secure finance for the balance of the purchase price. Don’t risk it.
With pre-approval you’ll know how much you can borrow and how much you can spend and you won’t waste time looking at places out of your price range. Talk to your local Aussie Mortgage Broker about having loan pre-approval in place before you start the hunt.
Continue to information about the extra costs when buying a property.
Aussie does not provide any financial or investment advice. This document has been prepared as a factual guide only. It does not take account of your objectives, financial situation or needs. Aussie recommends that you seek independent financial advice and obtain your own professional legal and taxation advice before making an investment decision.