When you think about your future:
…the chances are you’re imagining yourself living somewhere nice. You probably have a good career, you may be married, but you probably have your own home. You will have no problems keeping up mortgage payments because you have such a good job, and all in all, life is pretty good.
While some of your dreams may never come true, there is one that can come true, and that’s the concept of owning your own home. While a lot of us like to rent property, many of us like to have a bit of stability and get on the property ladder. Although it may all seem like a dream, it can come true, and it does come true for many Australians every year.
Use A Mortgage Calculator:
One of the best ways you can make sure you take out a mortgage you can afford to pay off, is by using a mortgage calculator. This is a calculator that will take into account how much money your household earns, it will then determine how much you can be loaned by a specific financial institution. You will also learn how much interest you are likely to pay, but don’t worry too much if the interest seems high, someone else might offer you a better deal.
You will also get to learn how much you will have to pay back each month. While you won’t have to pay back a huge amount (Unless you have a big mortgage), you will still have to pay at least $300-400 back. It can all depend on the property you buy and how much you need to borrow. What’s more it can also depend on how much interest is going to be placed on your mortgage too.
How Much You Earn:
Think about how much you earn, and how much you can afford to pay back each month. If there are two of you named on the mortgage, you’ll be able to halve the monthly cost, but it could still be quite expensive.
If a mortgage of $200,000 is going to leave your broke for the next 20+ years, it may be worth your while considering some tips and advice from professionals, or looking for another mortgage lender who won’t ask for as much money back each month.
Remember that if you’re offered a $200,000 mortgage for example, you don’t have to take a $200,000 mortgage out. You can offer as much or as little as you like on a home, just be sensible and make sure you can afford those monthly repayments.
Keeping Up Repayments:
You have probably heard a few terms and conditions being read out on the radio or television stating ‘Your home may be at risk if you don’t keep up repayments’, and while its’ true, you should do your best to avoid that situation in the first place.
Work it all out using a mortgage calculator, and make sure you can afford your new place before you sign on the dotted line. if you’re taking out a home loan, you might want to consider using a calculator too as they are ideal for both home loans and mortgages.