How much can I afford to borrow? How much should I borrow?

• The amount you can borrow, commonly known as your borrowing capacity or borrowing power, will differ from lender to lender, even product to product.
• However affordability issues such as interest rate increases and interruptions to income can arise. Will you still be able to make the loan repayments?
• Domane Financial Solutions can give you an initial idea of how much you can (as well as should) borrow. We will give you a complete individual assessment of your situation when we meet.

Deposit:

• The deposit required depends largely on the type of home loan and, of course, the lender you select. As a general rule, if you are an owner-occupier you will require a minimum of at least 5% of the purchase price as a deposit. If you are an investor, you will ideally require 10% of the purchase price, although it’s possible to purchase with less.

As a rough guide, it is recommended that you budget a further 5-7% of the purchase price, on top of your deposit, to cover fees and charges associated with property purchase. These fees and charges may include (but are not limited to):

• Building/pest inspection and/or strata report
• Loan application and settlement fees
• Valuation fees
• Lenders Mortgage Insurance (LMI)
• Solicitor / conveyancer fees
• Stamp duty
• Property insurance
• Connection fees – phone/gas/electricity/water
• Council rates
• Strata fees (for units/apartments)
• Removalist fees