Home Buying.

Buying a home is a big deal.  Knowing how much you can afford to spend, how much you need to save up as a deposit and what type of home loan is right for you are examples of questions which may be going through your mind.  We have shared some helpful tools to assist with these complex decisions.

 

i need to know Which home loan is right for me?

  • We wrote a blog on this, which explains the different types of loans - this may be a helpful resource
  • Otherwise, I like the banks' home loan comparison tools - CBA's if you want to do a comparison between two types of loans / two different parameters or NAB's home loan selector tool

 

I want to know size of loan, repayments and upfront costs when i have a house in mind

  • If you have a home in mind, you can work out the size loan you need, how much you need ongoing and also responsibly require upfront
  • Realestate.com.au has a great calculator to work out loan amount, monthly repayments and upfront costs here
  • There are tools that allow you to break down these different costs, these are outlined below

 

i want to know what i can borrow given my financial situation

  • There are a number of tools available which allow you to work out what you can borrow, given your (and your partner's) income and expenses.  It is important to note that we are currently in the lowest interest rate environment in decades, so worthwhile applying a buffer to the numbers
  • NAB's borrowing capacity calculator is really useful as is CBA's how much can I borrow calculator

 

I want to know my repayments for a given loan size

  • The banks, in our opinion, have the easiest tools to assist with this - see ANZ, CBA and NAB's repayment calculators.  This is the amount you will need to have every month to contribute towards your home loan

 

i want to know how much do i need to save for a deposit

  • A tool that will help work out how much you need to save for a deposit see ANZ's deposit calculator and to determine how long you will need to save up the upfront costs amount, see ASIC's Savings Goal Calculator