How much can I afford to borrow?

The amount you can afford to borrow towards your new home will depend on a number of factors.

• How much do you earn?
• How much do you & your partner earn?
• What is the income of the people that you may be buying the property with?
• How much do you spend each month on other commitments such as loans or even travel expenses?
• What are your current assets and liabilities?

A Number of sites and financial calculations tend to turn a lot of people off when starting the purchase process and some clients decide to leave these calculations until the last minute and that can lead to a lot of stress and disappointment, however doing the numbers is not as hard or as daunting as you may initially think.

We at Neomoney can assist you in providing the scenarios, calculating monthly repayments based on your estimated loan amount from several lenders, different interest rates for current repayments, in case interest rates rise we can provide future indicative scenarios.

First Home buyers may be exempt but don’t forget the stamp duty may apply when you buy your new home. In the Tools section of the Neomoney site you’ll find some helpful checklists that you can print out and refer to during the spending plan / estimation process. At the end you’ll have a quick reference of your estimated financial position that you can use when you call us at Neomoney to set up your loan requirements.

Best of all, if you get it all out of the way now, you won’t need to worry about doing it all later! Importantly, knowing your financial position will help you determine how much you can borrow, so you can start setting realistic expectations in terms of what house you can look at potentially buying.

You should also consider talking to an independent financial adviser or your accountant about your intention to buy a property. Talk to us at Neomoney as we have a few.