Home Loans 101: How much mortgage can I afford?
Knowing how much one can borrow from a home loan is a common question most borrowers have at an earlier stage of their loan application.
But before anyone can determine the amount they can borrow, there are a lot of factors that must be considered. By weighing these factors in, one can decide, with confidence, the right loan to take based on their ability to repay and actual need.
Types of loan
For starters, the amount that one can actually borrow largely depends on the type of loan they are looking at. Home loans offer a relatively higher borrowing ceiling as compared to personal loans, which are specifically designed for short term and personal needs.
READ MORE: Home Loans Repayment Relief Amid Pandemic With Household Relief Loan
According to the Australian Bureau of Statistics (ABS), the average home loan amount in the country was pegged at $549,493. That figure is based on ABS’ May 2020 report. It is worth noting that the loan size is also largely influenced by the location of the property, among others.
The amount that one can borrow for personal loans vary significantly as there are just too many types of personal loans available in the market today.
First time home buyers
The amount that one can borrow can also be influenced by whether or not they are first time borrowers. Data shows that the loan size for first time and non-first time home buyers vary.
For first time buyers, the average loan amount is pegged at $453,579 as of June 2021 data. Data also revealed that the loan size for this category continuously increased in the past years despite dipping in the third quarter 2020.
Using home loan calculators
Probably among the most essential tools that any home buyer should use are the home loan calculators. There are different types of calculators that one can choose from at every stage of home loans applications--from initial planning to repayment.
Most banks and lenders in Australia have their proprietary calculators that are tailored fit to every borrower’s needs and circumstances.
READ MORE: Things to Know About Reverse Mortgage
At Intellichoice, we have a selection of dozens of calculators that can help you ascertain just how much you can borrow based on your personal circumstances. Some of these calculators are also geared towards assisting you better manage your finances and as a result, enjoy your mortgage.
Are you having difficulty with your home loan repayments and want to explore possible options on how to manage your debts? Talk to one of our trusted brokers and will guide you through the intricate process of debt management during this time of high uncertainty. Visit our website or schedule your appointment by calling 1300 55 10 45.
But before anyone can determine the amount they can borrow, there are a lot of factors that must be considered. By weighing these factors in, one can decide, with confidence, the right loan to take based on their ability to repay and actual need.
Types of loan
For starters, the amount that one can actually borrow largely depends on the type of loan they are looking at. Home loans offer a relatively higher borrowing ceiling as compared to personal loans, which are specifically designed for short term and personal needs.
READ MORE: Home Loans Repayment Relief Amid Pandemic With Household Relief Loan
According to the Australian Bureau of Statistics (ABS), the average home loan amount in the country was pegged at $549,493. That figure is based on ABS’ May 2020 report. It is worth noting that the loan size is also largely influenced by the location of the property, among others.
The amount that one can borrow for personal loans vary significantly as there are just too many types of personal loans available in the market today.
First time home buyers
The amount that one can borrow can also be influenced by whether or not they are first time borrowers. Data shows that the loan size for first time and non-first time home buyers vary.
For first time buyers, the average loan amount is pegged at $453,579 as of June 2021 data. Data also revealed that the loan size for this category continuously increased in the past years despite dipping in the third quarter 2020.
Using home loan calculators
Probably among the most essential tools that any home buyer should use are the home loan calculators. There are different types of calculators that one can choose from at every stage of home loans applications--from initial planning to repayment.
Most banks and lenders in Australia have their proprietary calculators that are tailored fit to every borrower’s needs and circumstances.
READ MORE: Things to Know About Reverse Mortgage
At Intellichoice, we have a selection of dozens of calculators that can help you ascertain just how much you can borrow based on your personal circumstances. Some of these calculators are also geared towards assisting you better manage your finances and as a result, enjoy your mortgage.
Are you having difficulty with your home loan repayments and want to explore possible options on how to manage your debts? Talk to one of our trusted brokers and will guide you through the intricate process of debt management during this time of high uncertainty. Visit our website or schedule your appointment by calling 1300 55 10 45.
