How much does your family earn each year? What is the family spending every week/ fortnight/month/year? Include all expenses and do not forget to include any repayments on hire purchases, personal loans such as car loans and any other borrowings. Are you planning a holiday? Budget for this holiday as well. What are you able to save at the end of the month after providing for all expenses. The savings you have achieved at the end of the month, after providing for all expenditure, should be a guideline to how much extra you can afford towards your mortgage repayments over what you are currently paying. Most banks and lenders will allow you to borrow between 3 – 5 times your families gross annual income. The actual amount you can borrow will depend on a number of other factors such as:

1. Number of dependent children in the family

2. Size and repayments of any personal borrowing

3.Property type

4. Initial deposit total

As a First Home Buyer you may be eligible to apply for a First Home Loan which reduces your minimum deposit from 20% down to a 5% deposit. This 5% represents your contribution towards the purchase of your home. Ideally you will have saved this amount over the last 3 months or more. In exceptional situations, the lender may consider equity from a family member’s home as a deposit.