Borrowing Capacity - Calculator?

Hi all,
Long time reader, first time poster!
Background: me and my fiance are 28 and are looking to stop renting and make the plunge in the next 12 months.
Our financial situation is roughly as follows: current savings = $100K, savings/year = $40K, rent/year = $25K, combined income pre-tax excluding super = $180K
Is someone able to tell me how much our borrowing capacity would be? Or whether there is an accurate online calculator available?
Thanks in advance

 

Welcome.
There isn’t an accurate online calculator. The best way is to contact a broker or banker, complete their survey/initial fact find and they can give you a good estimate. Send them your payslips ID and savings and transaction statements and they can confirm which lenders policies best suit.

Best of luck.

 

Home Loan Calculators | Mortgage and Borrowing - HSBC AU

is a start but not too accurate but gets you a basic idea but with much I can borrow probably set it at 8% interest P+I to be conservative 30 year loan (also assume you can tip in 20% deposit plus stamps etc.)

 

I don't trust the online calculators. The last one I did 100% accurate and it's supposed to be a good one, told me I could borrow $1,000,000

Seriously, speak to a broker

 

only takes a minute to do and I am not saying not to speak to broker but those calculators have their place

 

Hey Dan, bank calcs are not much more than a marketing tool. It's pretty complex these days, but if you email some details to a broker along with your payslips they should be able to give you a ball park figure.

 

Even if this was accurate (and it's not even close to HSBC's policy or any other lender), most people wouldn't give it the right information to begin with. The really bad thing is they tend to grossly over estimate the actual figure, leading to people making bad decisions.

These calculators are a marketing tool to generate business. They have no place in assessing borrowing capacity.

 

Best to hit up a decent broker re your borrowing capacity - a few good ones have responded to your post.

Cheers

Jamie

 

Gone are the days of using online calc..

And great that you starting to prepare now for it!.. Any decent broker should be able to help crunch the numbers and guide you through the process and make you aware of pitfalls (if any)..

From timing perspective, property market should have hopefully bottomed by then too. Kind of great timing wise I'll say!..

Good luck,

 

Interesting, can you explain why you think the market will bottom out in the next 12 months? Should I be waiting 12 months before buying property?

 

Looking at those numbers you may max out based on your deposit before you hit a serviceability limit.

If you stick to a max LVR of 88% (unless you want to pay through the nose for LMI), then your deposit would enable you to purchase a property worth roughly $675,000 e.g.

$81,000 deposit
$17,785 stamp duty (based on concession rate, First home buyer duty exemption, concession or reduction | State Revenue Office assuming you are a first home buyer)
$2,000 legals
Total: $100,785

This would leave you with a loan of $594,000 + ~$9,000 (LMI), which should be well within your serviceability on those incomes.

But yeah... *echo* Speak to a broker, etc *echo* as there are a lot of variables (e.g. if you were buying a new home there may be additional concessions).