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What can you afford?

Calculate what repayments you can afford.

As a ‘rule of thumb’, lenders will base the loan on an amount that does not exceed a set percentage of gross (pre-tax) income.

It makes sense to have your finance organised before you start looking. This ensures a smooth buying process so that if you find something you like, you know your limit and have your deposit ready.

You also need to allow for additional costs such as legal, conveyancing, stamp duty on the transfer of the property, stamp duty on the mortgage, loan application fees, moving expenses, repair and maintenance, insurance fees and adjustment fees such as water and council rates.