Max lend on a 45k Aussie Salary
Oct 16th 2003, 1:48 pm
#1
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Posts: n/a
Max lend on a 45k Aussie Salary
On a 45,000k income. how much are Aussie lenders lending? Answers in Multiples, Dollars etc.
I ask cos I can put down a 20 - 33pc deposit on any home I choose to buy, and avoid higher rates, insurance rates, the possibility of a buy to let etc, but am not sure if I can afford the repayments...
the irony is that once my missus is working and/or has sold her flat we will be fine, but I want to buy quick when I arrive and am not sure I can QUITE afford it on my own..the first few months. I don't want to wait and then be priced out of the market. As happened in the UK 3 years ago.....GGRRRR I'm determined to own a property with more than 1 bedroom and a garden even if it kills me.
in the Uk, historically, I could borrow probably 3x my salary, say GBP100,000K on my income minimum. With recent low rates and "ability to pay" mortgages, I could probably say borrow as much as GBP150k.
Maybe then this would equate to me being able to borrow AUS150k - AUS225k. I think I will need to borrow at least AUS 200k in order to get a small villa. Just to get my foot on the ladder.
Or am I being overly optimistic?
According to a mate of mne that does UK mortgages the housing bubble is causing mg companies NOW/SOON to revise their up to now generous lending. Straya may follow suit. ;-(
Badge
I ask cos I can put down a 20 - 33pc deposit on any home I choose to buy, and avoid higher rates, insurance rates, the possibility of a buy to let etc, but am not sure if I can afford the repayments...
the irony is that once my missus is working and/or has sold her flat we will be fine, but I want to buy quick when I arrive and am not sure I can QUITE afford it on my own..the first few months. I don't want to wait and then be priced out of the market. As happened in the UK 3 years ago.....GGRRRR I'm determined to own a property with more than 1 bedroom and a garden even if it kills me.
in the Uk, historically, I could borrow probably 3x my salary, say GBP100,000K on my income minimum. With recent low rates and "ability to pay" mortgages, I could probably say borrow as much as GBP150k.
Maybe then this would equate to me being able to borrow AUS150k - AUS225k. I think I will need to borrow at least AUS 200k in order to get a small villa. Just to get my foot on the ladder.
Or am I being overly optimistic?
According to a mate of mne that does UK mortgages the housing bubble is causing mg companies NOW/SOON to revise their up to now generous lending. Straya may follow suit. ;-(
Badge
Last edited by badgersmount; Oct 16th 2003 at 1:53 pm.
Oct 16th 2003, 2:16 pm
#2
Rocket Scientist
Joined: Aug 2003
Location: Dreamland AKA Brisbane which is a different country to the UK
Posts: 6,911
Re: Max lend on a 45k Aussie Salary
Originally posted by badgersmount
On a 45,000k income. how much are Aussie lenders lending? Answers in Multiples, Dollars etc.
I ask cos I can put down a 20 - 33pc deposit on any home I choose to buy, and avoid higher rates, insurance rates, the possibility of a buy to let etc, but am not sure if I can afford the repayments...
the irony is that once my missus is working and/or has sold her flat we will be fine, but I want to buy quick when I arrive and am not sure I can QUITE afford it on my own..the first few months. I don't want to wait and then be priced out of the market. As happened in the UK 3 years ago.....GGRRRR I'm determined to own a property with more than 1 bedroom and a garden even if it kills me.
in the Uk, historically, I could borrow probably 3x my salary, say GBP100,000K on my income minimum. With recent low rates and "ability to pay" mortgages, I could probably say borrow as much as GBP150k.
Maybe then this would equate to me being able to borrow AUS150k - AUS225k. I think I will need to borrow at least AUS 200k in order to get a small villa. Just to get my foot on the ladder.
Or am I being overly optimistic?
According to a mate of mne that does UK mortgages the housing bubble is causing mg companies NOW/SOON to revise their up to now generous lending. Straya may follow suit. ;-(
Badge
On a 45,000k income. how much are Aussie lenders lending? Answers in Multiples, Dollars etc.
I ask cos I can put down a 20 - 33pc deposit on any home I choose to buy, and avoid higher rates, insurance rates, the possibility of a buy to let etc, but am not sure if I can afford the repayments...
the irony is that once my missus is working and/or has sold her flat we will be fine, but I want to buy quick when I arrive and am not sure I can QUITE afford it on my own..the first few months. I don't want to wait and then be priced out of the market. As happened in the UK 3 years ago.....GGRRRR I'm determined to own a property with more than 1 bedroom and a garden even if it kills me.
in the Uk, historically, I could borrow probably 3x my salary, say GBP100,000K on my income minimum. With recent low rates and "ability to pay" mortgages, I could probably say borrow as much as GBP150k.
Maybe then this would equate to me being able to borrow AUS150k - AUS225k. I think I will need to borrow at least AUS 200k in order to get a small villa. Just to get my foot on the ladder.
Or am I being overly optimistic?
According to a mate of mne that does UK mortgages the housing bubble is causing mg companies NOW/SOON to revise their up to now generous lending. Straya may follow suit. ;-(
Badge
Westpac or National Austrlia Bank & use their calculators. Westpac has a particularly good set that allows you to work out not only how much you can borrow on a salary but also based on max repayments, deposits needed etc.
Have a play & see what you come up with
.
Oct 16th 2003, 2:23 pm
#3
Born to be ignored
Joined: Sep 2003
Location: Anstead, Brisbane
Posts: 1,138
Mrs Dagboy,
Shouldn't you be asleep now? What time is it over there?
Jane
Shouldn't you be asleep now? What time is it over there?
Jane
Oct 16th 2003, 2:27 pm
#4
A Male Member
Joined: Apr 2003
Location: Townsville
Posts: 2,106
Re: Max lend on a 45k Aussie Salary
Originally posted by MrsDagboy
Badgers, Plug just asked a similar/related question. Its not only worked out on your income but also your expenses. Have a look at some of the bank sites eg
Westpac or National Austrlia Bank & use their calculators. Westpac has a particularly good set that allows you to work out not only how much you can borrow on a salary but also based on max repayments, deposits needed etc.
Have a play & see what you come up with.
Badgers, Plug just asked a similar/related question. Its not only worked out on your income but also your expenses. Have a look at some of the bank sites eg
Westpac or National Austrlia Bank & use their calculators. Westpac has a particularly good set that allows you to work out not only how much you can borrow on a salary but also based on max repayments, deposits needed etc.
Have a play & see what you come up with
.
Slightly scarey
Just worked out that if the wife and I both had a 30k income (absolute worse case!!!!) we could get a 500k mortgage!!
Surely that can't be right??????
Oct 16th 2003, 2:31 pm
#5
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Joined: Aug 2003
Location: Dreamland AKA Brisbane which is a different country to the UK
Posts: 6,911
Jane, just off to bed now, hubby is asleep but Im still up pacing the floor waiting for some painkillers to kick in 
.
Pete, no, you've left something out, even we couldnt borrow that much
.
.Pete, no, you've left something out, even we couldnt borrow that much
.
Oct 16th 2003, 2:34 pm
#6
Born to be ignored
Joined: Sep 2003
Location: Anstead, Brisbane
Posts: 1,138
Hope they kick in soon!
Have a good nights rest,
Jane
Have a good nights rest,
Jane
Oct 16th 2003, 2:38 pm
#7
Guest
Posts: n/a
Re: Max lend on a 45k Aussie Salary
Originally posted by PeteY
Slightly scarey
Just worked out that if the wife and I both had a 30k income (absolute worse case!!!!) we could get a 500k mortgage!!
Surely that can't be right??????
Slightly scarey
Just worked out that if the wife and I both had a 30k income (absolute worse case!!!!) we could get a 500k mortgage!!
Surely that can't be right??????
sounds about right pete, i just worked ours out at about that.
Oct 16th 2003, 2:40 pm
#8
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Posts: n/a
just had a little fiddle with the settings and if you both earn $2500 a month with no dependants (we have 2) over 30 years you can borrow $509,769
not bad eh?
not bad eh?
Oct 16th 2003, 3:21 pm
#9
MODERATOR
Joined: Nov 2002
Location: Redneck Wonderland
Posts: 9,932
Originally posted by welshboybilly
just had a little fiddle with the settings and if you both earn $2500 a month with no dependants (we have 2) over 30 years you can borrow $509,769
not bad eh?
just had a little fiddle with the settings and if you both earn $2500 a month with no dependants (we have 2) over 30 years you can borrow $509,769
not bad eh?
I think you have to be realistic and stay well within your limits sorry to sound like a party pooper but I remember the early 90's and the thousands of repossessions and negative equity it will happen in Australia soon enough and there will be loads of folks waiting to snap up the quality repos'
Oct 16th 2003, 3:24 pm
#10
Gone Senile Member
Joined: Sep 2001
Location: Sydney
Posts: 3,014
Originally posted by welshboybilly
just had a little fiddle with the settings and if you both earn $2500 a month with no dependants (we have 2) over 30 years you can borrow $509,769
not bad eh?
just had a little fiddle with the settings and if you both earn $2500 a month with no dependants (we have 2) over 30 years you can borrow $509,769
not bad eh?
currently with the low interest rate borrowing against income expenditure is very high - they will work to multiples of over x5!!! also can depend on deposit...cause like the UK they can get any fall in house price back from your initial input if things go south for you!
Do the figures for yourself based on personal reasons. Badgers go with an agency as soon as you get over like Aussie mortgage brokers or the like(some general company to do the leg work), if you only need to borrow high for an initial period you are in. But look long term on personal goals if your mortgage is high and you might need to sustain that input, eg factor in only one income for certain periods etc. Bad advice is everywhere! Look for decent planning prospects if you need a mortgage.
Cheers
Oct 16th 2003, 3:24 pm
#11
A Male Member
Joined: Apr 2003
Location: Townsville
Posts: 2,106
Originally posted by cresta57
Not bad at all until there's a 2%+ increase in the interest rate:scared: :scared:
I think you have to be realistic and stay well within your limits sorry to sound like a party pooper but I remember the early 90's and the thousands of repossessions and negative equity it will happen in Australia soon enough and there will be loads of folks waiting to snap up the quality repos'
Not bad at all until there's a 2%+ increase in the interest rate:scared: :scared:
I think you have to be realistic and stay well within your limits sorry to sound like a party pooper but I remember the early 90's and the thousands of repossessions and negative equity it will happen in Australia soon enough and there will be loads of folks waiting to snap up the quality repos'
With a 500k mortgage, the repayments are about 4k a month, which is a HUGE chunk from a 5k salary.
Oct 16th 2003, 3:25 pm
#12
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Posts: n/a
Originally posted by cresta57
Not bad at all until there's a 2%+ increase in the interest rate:scared: :scared:
I think you have to be realistic and stay well within your limits sorry to sound like a party pooper but I remember the early 90's and the thousands of repossessions and negative equity it will happen in Australia soon enough and there will be loads of folks waiting to snap up the quality repos'
Not bad at all until there's a 2%+ increase in the interest rate:scared: :scared:
I think you have to be realistic and stay well within your limits sorry to sound like a party pooper but I remember the early 90's and the thousands of repossessions and negative equity it will happen in Australia soon enough and there will be loads of folks waiting to snap up the quality repos'
agreed, im in the lucky position of not having to borrow a penny when we start out so i was just speculating, but these rates are good and if i was to borrow i would only borrow what i could afford to repay in the event of a pay cut/interest rise.
Oct 16th 2003, 3:34 pm
#13
Gone Senile Member
Joined: Sep 2001
Location: Sydney
Posts: 3,014
Originally posted by PeteY
We will be taking AS SMALL a mortgage as we can manage on. Hopefully we will one day be able to get another small mortgage on a buy to rent type deal....
With a 500k mortgage, the repayments are about 4k a month, which is a HUGE chunk from a 5k salary.
We will be taking AS SMALL a mortgage as we can manage on. Hopefully we will one day be able to get another small mortgage on a buy to rent type deal....
With a 500k mortgage, the repayments are about 4k a month, which is a HUGE chunk from a 5k salary.
Taking on a flexible plan makes these repayment terms look good, but work on at least half again....the mortgage rates have been as high as 17% in Aus, and it was only 10 yrs ago the Uk was around 13%
Leave rooom for change
Cheers
Oct 16th 2003, 3:38 pm
#14
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cresta is bang on the money. I've got so many mates overstretching themselves.
What gets me is where all these people have been getting their money from - the people fuelling this worldwide housing boom..
one of the reasons of going to aussie is advancing up the ladder a tad.
sometimes I wonder what it must have been like to be able to walk in to a estate agent before c.1998 with an average professional salary and just buy a small home with a garden etc
I would kill to have been in a half decent job six years ago...
badge
What gets me is where all these people have been getting their money from - the people fuelling this worldwide housing boom..
one of the reasons of going to aussie is advancing up the ladder a tad.
sometimes I wonder what it must have been like to be able to walk in to a estate agent before c.1998 with an average professional salary and just buy a small home with a garden etc
I would kill to have been in a half decent job six years ago...
badge
Last edited by badgersmount; Oct 16th 2003 at 3:44 pm.
Oct 16th 2003, 3:46 pm
#15
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Location: Ping Ponged York via Melbourne and now pinged to Ferny Hills, Brisbane
Posts: 1,177
Re: Max lend on a 45k Aussie Salary
Originally posted by PeteY
Slightly scarey
Just worked out that if the wife and I both had a 30k income (absolute worse case!!!!) we could get a 500k mortgage!!
Surely that can't be right??????
Slightly scarey
Just worked out that if the wife and I both had a 30k income (absolute worse case!!!!) we could get a 500k mortgage!!
Surely that can't be right??????
Jo