How much can I borrow
Before looking for a home
You need to know how much you can afford to spend on your loan repayments each month. Starting with working out your family budget. Remember to remove your current accommodation expenses from the budget, as you will need to include this amount as a starting point for cost of the loan repayments for your first home.
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.
Questions to answer
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:
- Number of dependent children in the family
- Size and repayments of any personal borrowings
- Property type
- Initial deposit total
Would you like to speak to one of our financial advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.
What kiwis are saying about usOur journey with our clients lasts beyond the life of their home loan. That’s why we ask them to keep us posted on how we are doing along the way.
Satish is a very honest man and genuinely cares for his clients. He gives very good advise to his clients based on their needs. I would highly recommend using his services. He also gives his 100% to get the best deals from the banks for his clients.
I have dealt with Satish on more than one occasion – primarily for arranging mortgage. I have found Satish a very knowledgeable and reliable person to deal with and he has a pragmatic approach to solving problems. I will be happy to deal with him again for any mortgage/financial advisory related matter and without any doubt recommend him to anyone seeking such services.
Satish was very helpful and informative in arranging finance for the home buying process. He clearly advised of all available options for the process and ran through the best fit for our situation. I highly recommend Satish.
Satish has been extremely friendly yet professional in his business dealings with me. He knows his subject very well, and provides valuable financial advice. I would highly recommend his services to anyone, because I have found Satish reliable and helpful.
I have solicited Satish’s advice quite a few times relating to Mortgage. At all times he has been able to provide insights that has helped me arrive at informed decisions. Satish’s candidness and willingness to help is highly commendable. I would have no hesitation in recommending him at all.
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