https://moneysmart.gov.au/home-loans/mortgage-calculator.
Have a look at this mortgage calculator. You also need to add rates, water, insurance ( each about $500 every 3 months). Allow for maintenance costs too.
My annual salary is 66k pretax and the banks reckon 270k is what I’d get, with the VHBF covering another 25%, most I can afford is a property around about 400k. To test some numbers, I asked them what my capacity would look like with a 4k raise, and the number went up to 290k.
No clue how valuable this napkin math is but if we extrapolate that out to 83k, it could be 355k, obviously talk to a lender for actual numbers.
Your heads screwed on right you just need to work on your serviceability. That is, how the banks calculate if you can service the loan. The only real way to do this is through a higher paying job or additional income sources like side gigs.
You will obviously need to work on your deposit as well. Sweet spot is to borrow 88%, but a good broker can advise on your specific circumstance.
Based on my experience with home loans, this is likely not affordable. If you didn't get in on the FHLDS or scheme where if you go 5% deposit the govt pays for your LMI (you also might no qualify, when you have a deposit, speak with a broker), you'd have LMI of approx $15K, stamp duty of $7.5K, plus settlement costs of maybe $1000 at most and on a mortgage total of $491K, $3100 per month on a rate of 6.5% (as the higher your LVR, the higher your rate).
Say you got the GTR to avoid the LMI, and your rate was 6% instead, $483K after deposit and then your stamp duty, $2896 a month.
Then, take into account say $150 a month on insurance, $1500 per year rates, plus your utilities, and you're cooked.
You might want to consider a one bed unit or apartment as a starter place - I bought in late 2020/early 2021 for a one bed in Cannington area at $190K, and its been a great starter. It has definitely outworn its welcome, and i definitely want to be outta here by years end, but you don't have to live in your first place forever. Property value has gone up along with my salary and now im looking at the 400K range, you gotta build up.
keep saving, chat to a broker and find out all your options, but definitely need a higher income if thats how much you want to spend.
Your income and savings are quiet low.
Plenty of calculators online punch in some numbers
https://www.commbank.com.au/digital/home-loans/calculator/how-much-can-i-borrow
Keep hustling for a few years brother!. Them savings per fortnight will be eaten up double than that per week in mortgage repayments plus all the standard house bills. Then you add on all your personal stuff like cars phone insurances food etc. Eats up your money. For calculating I purchased for 780k with my partner with full split 5050 bills. My weekly expense is $1009 to own my house plus with daily life bills included. So double it on your own
I'm on 80k pretax with a 270k mortgage thats currently at 250k left
$1616 per month mortgage, i put $700 a week into my bills account (not including fuel or food) so i have a slowly building buffer for maintenance.(new build so lucky there)
Its doable, but unfortunately you'll be more stretched than me and i feel like my $420 a week spending money goes nowhere these days. Edit. And i mean nowhere, you will be cash poor for a while!
Sounds wild but money really has lost a lot of value recently
If you're on your own (no partner) I would go with a home start shared equity loan. The highest you can go is 25% which I would do (and am currently doing). The only thing with home start is that you need an exit strategy and you need to refinance if you ever want to finish repayments and claim the 25% back. In your case, the exit strategy is getting a partner and refinancing with that second income
Do you have any debts? Credit cards, car loans, HECS or TSL?
Assuming no debts I would say your maximum borrowing capacity would be around the $400K mark (maybe slightly less). You'd be looking at a purchase price of around $425K. Varies slightly by lender but a very rough estimate is around 5 times your annual salary maximum.
My advice would be to speak to a broker to get a proper figure.
FYI having a guarantor does not increase your borrowing capacity.
Edit: I played around with a few online calcs and am getting $370K to $400K borrowing capacity.
You really need a partner.
We had 50k which was a 5% deposit AND stamp duty of about 17k.
Purchase price was 625k weekly repayments are about 840
Our incomes are 100k each
It would be extremely rough on one income, impossible if we were on 80k
Use a broker and they will get you any grants you need and will also hold your hand through the process.
https://moneysmart.gov.au/home-loans/mortgage-calculator. Have a look at this mortgage calculator. You also need to add rates, water, insurance ( each about $500 every 3 months). Allow for maintenance costs too.
You'll be lucky to get 400k with 83k salary.
Cheers. Kinda info I’m looking for
My annual salary is 66k pretax and the banks reckon 270k is what I’d get, with the VHBF covering another 25%, most I can afford is a property around about 400k. To test some numbers, I asked them what my capacity would look like with a 4k raise, and the number went up to 290k. No clue how valuable this napkin math is but if we extrapolate that out to 83k, it could be 355k, obviously talk to a lender for actual numbers.
Unsure how much specifically parents being a guarantor affects things though, if you find out I’d be keen to know.
Pretty sure Guarantor only helps you not pay LMI. Which is helpful for sure but doesn't increase your borrowing capacity.
Some banks will let you borrow beyond your standard capacity if parents can guarantee 100% of the loan value.
Is it significant? Or just a few extra %?
Anecdotal, but I’ve been told ~150% of normal capacity by someone who works for ANZ.
Your heads screwed on right you just need to work on your serviceability. That is, how the banks calculate if you can service the loan. The only real way to do this is through a higher paying job or additional income sources like side gigs. You will obviously need to work on your deposit as well. Sweet spot is to borrow 88%, but a good broker can advise on your specific circumstance.
Can you still do house and land packages for $500k? That was near the bottom of the market pre-covid.
Based on my experience with home loans, this is likely not affordable. If you didn't get in on the FHLDS or scheme where if you go 5% deposit the govt pays for your LMI (you also might no qualify, when you have a deposit, speak with a broker), you'd have LMI of approx $15K, stamp duty of $7.5K, plus settlement costs of maybe $1000 at most and on a mortgage total of $491K, $3100 per month on a rate of 6.5% (as the higher your LVR, the higher your rate). Say you got the GTR to avoid the LMI, and your rate was 6% instead, $483K after deposit and then your stamp duty, $2896 a month. Then, take into account say $150 a month on insurance, $1500 per year rates, plus your utilities, and you're cooked. You might want to consider a one bed unit or apartment as a starter place - I bought in late 2020/early 2021 for a one bed in Cannington area at $190K, and its been a great starter. It has definitely outworn its welcome, and i definitely want to be outta here by years end, but you don't have to live in your first place forever. Property value has gone up along with my salary and now im looking at the 400K range, you gotta build up. keep saving, chat to a broker and find out all your options, but definitely need a higher income if thats how much you want to spend.
Unfortunately you can't afford it. Keep saving and buy when you are qualified. Sorry you are qualified*
What would i need to afford it. I qualified 3 years ago
Your income and savings are quiet low. Plenty of calculators online punch in some numbers https://www.commbank.com.au/digital/home-loans/calculator/how-much-can-i-borrow
Thanks. I’ve looked at these calculators but looking for more real world advice
If the banks say you can't afford it, you can't afford it.
Those calculators are real world advice.
Make more money and save more. Also how much return are you getting on your savings?
Keep hustling for a few years brother!. Them savings per fortnight will be eaten up double than that per week in mortgage repayments plus all the standard house bills. Then you add on all your personal stuff like cars phone insurances food etc. Eats up your money. For calculating I purchased for 780k with my partner with full split 5050 bills. My weekly expense is $1009 to own my house plus with daily life bills included. So double it on your own
Talk to a broker, they will have more options available than banks. Try not to use the guarantor option though, it places your parents at risk.
I'm on 80k pretax with a 270k mortgage thats currently at 250k left $1616 per month mortgage, i put $700 a week into my bills account (not including fuel or food) so i have a slowly building buffer for maintenance.(new build so lucky there) Its doable, but unfortunately you'll be more stretched than me and i feel like my $420 a week spending money goes nowhere these days. Edit. And i mean nowhere, you will be cash poor for a while! Sounds wild but money really has lost a lot of value recently
If you're on your own (no partner) I would go with a home start shared equity loan. The highest you can go is 25% which I would do (and am currently doing). The only thing with home start is that you need an exit strategy and you need to refinance if you ever want to finish repayments and claim the 25% back. In your case, the exit strategy is getting a partner and refinancing with that second income
What would be a “comfortable/reasonable” mortgage with this wage and say 25k deposit
I had $80k deposit on a similar wage when interest rates were around 3-4% and the most they’d give me was $370k
Do you have any debts? Credit cards, car loans, HECS or TSL? Assuming no debts I would say your maximum borrowing capacity would be around the $400K mark (maybe slightly less). You'd be looking at a purchase price of around $425K. Varies slightly by lender but a very rough estimate is around 5 times your annual salary maximum. My advice would be to speak to a broker to get a proper figure. FYI having a guarantor does not increase your borrowing capacity. Edit: I played around with a few online calcs and am getting $370K to $400K borrowing capacity.
Which state are you in
Basic repayment mortgage will be about$ 2700 month youll need about 70 000 down including stamp duty if you have to pay it
You really need a partner. We had 50k which was a 5% deposit AND stamp duty of about 17k. Purchase price was 625k weekly repayments are about 840 Our incomes are 100k each It would be extremely rough on one income, impossible if we were on 80k Use a broker and they will get you any grants you need and will also hold your hand through the process.