We love to flick through the real estate sites, dreaming about our next big move. But life’s too short just to dream, so when it comes time to take action, it’s important to know what’s really within our reach. That’s where Bernie Lewis Home Loans is the bomb, giving us tips on getting a loan and ways to ensure we don’t go overboard and borrow beyond our means.
The lovely Mark Lewis from Bernie Lewis Home Loans gave us his top tips on how to navigate this exciting (and sometimes daunting) area when taking the next step to buy a house…
The big question
Every lender has a different lending policy so you will get a different answer from each one.
The best thing is to let us help you nut this out with one of our mortgage brokers to ensure you land on loan and repayment commitments that fit your needs and lifestyle, but to get you started, there are a few things to keep in mind.
Some will lend more and some will lend less, but the big thing to remember is to keep your eye on the big picture. It shouldn’t be about the maximum amount you can borrow, but the maximum amount you can afford. Going beyond this is just setting yourself up to fail, so a bit of thinking upfront can save a world of pain down the track.
How do you figure that out?
The amount you can afford is based on how much of your take-home income you are prepared to commit to mortgage payments. You need to take into account all of your other commitments and living expenses. A good idea is to draw up a budget so you can get an idea of where your money is going and accurately assess how much you can afford to commit to a mortgage.
Our budget calculator is a useful tool for this — have a look at it HERE.
With interest rates currently at historic lows, it’s a smart idea to allow for increased mortgage payments if, and when, interest rates increase.
Our repayment calculator is a good way to work out monthly repayments at different loan amounts and also to see the how different interest rates change this figure. Have a play with some figures, HERE.
If you want to get a rough guide of your borrowing capacity, you can use our Borrowing Power Calculator, HERE.
But don’t forget, you’ll need to also save a deposit, plus enough to cover stamp duty. If you’re a first home buyer and looking to build or buy a brand-new home, you may be eligible for the First Home Owners Grant of up to $15,000.
For an idea of what Stamp Duty may cost, pop some of the numbers into this calculator, HERE.
There’s a lot to take into consideration and for some, it may be daunting, but this is exactly what Bernie Lewis Home Loans helps you with. Get in touch and let these legends help you step out the figures so you can start turning those dreams into a reality.