Mortgage Affordability
Understanding how much you can borrow and what you can comfortably afford
Understanding how much you can borrow and what you can comfortably afford
Determining your mortgage affordability is crucial before starting your home buying journey. At NepaFinance, we help you understand exactly how much you can borrow based on your financial situation.
Most Australian lenders will allow you to borrow up to 6 times your annual income, but the actual amount depends on various factors including your expenses, existing debts, and the size of your deposit.
Lenders assess your gross income, including salary, bonuses, rental income, and other regular earnings.
Your monthly expenses including bills, groceries, transport, and lifestyle costs are carefully evaluated.
Credit cards, personal loans, car loans, and other financial commitments affect your borrowing capacity.
A larger deposit (20%+) improves affordability and helps you avoid Lenders Mortgage Insurance.
Add up all sources of regular income including salary, rental income, and other earnings.
Be realistic about your monthly living costs, bills, and lifestyle expenses.
Include all loan repayments, credit card debts, and financial commitments.
Lenders assess your ability to repay at rates 2-3% higher than current rates.
Reduce existing debts: Pay off credit cards and personal loans before applying.
Save a larger deposit: Aim for 20% to avoid LMI and improve borrowing power.
Improve your credit score: Pay bills on time and check your credit report for errors.
Consider a guarantor: A family member as guarantor can help you borrow more.
Get a free, no-obligation assessment of how much you can afford.
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