Approx realistic borrowing capacity?

Hi all,

We are couple with a pre-school kid, total household income of $190K (pre-tax) and approx $50K yearly expenses, a credit card with $10K limit and no other debts/liabilities.
Our situation:
HH Income: $190K (both in stable jobs, and in the same job for over 5 years)
Expenses: $50K
Credit card limit: $10K


I went online for calculators like Commbank and Bankwest. They calculate my borrowing capacity to be around $1Million!

$1M is a lot of dough for a pleb like me. Are these numbers realistic? Could a mortgage broker give me an approx realistic borrowing capacity?

 

How much deposit do you have?

 

prob around about that.

 

Does deposit matter at all to my borrowing capacity? I know it does matter when it comes to final stages/settlement.

Anyways, we have 200K towards deposit.

 

Thanks.
Does that mean the online bank calculators are quite accurate given my circumstances?

 

I haven't checked so can't comment on accuracy. Just using ballpark figures

 

Deposit has no bearing on serviceability, but without at least 15% you may find it hard to find a lender.

 

Borrowing capacity and what you can afford are different things. Think about if you have another child, lmi, impact on lifestyle if you borrow the mil. Save on rent, but repayments of 50k a year plus expenses.

 

Thanks that is valuable information.

I found this from a second tier lender i.e.Police bank (Interest Rates). They have "95% LVR loans" albeit with a slightly higher interest rate.

 

Agreed.

Isn't "lifestyle" the sole reason people borrow to own property atleast PPOR?

 

Its the only major asset that can be exempt from CGT, that is a major reason

 

Hang on, are you trying to say that all that talk about "this is forever home"/"we are sick of moving" are all hog-wash reasons and ppl will sell out if they can get a profit quickly?

 

That is not something I subscribe to.

 

Just because most people buy emotionally doesnt mean you have to.