koolkat

Hi all

How much of a mortage can I borrow with say $80 salary? Will I be able to get a 1 bedroom flat (or maybe 2) in a city centre. Havent decided which city yet. Would like Sydney but the cliche is "its too expensive" but is it possible? Or recomend another city?. My salary would gradually go up over time/experience. I am a first time buyer.

thanks
cheers

spottydog

Check out some bank websites to get an idea of what they will lend. What you can afford will also depend on the deposit you have (borrowing options generally reduced as you go further over 80% of value).

With regard to where you can affordcheck out domain.com.au but on a salary of$80k I would expect you can afford a 1 bed within 10kms of Sydney and possibly a 2 bed.

Bermudashorts

It isn't a cliche, Sydney is expensive. Assuming you are talking about funding the purchase on salary and you don't have a huge pot of savings, I would have thought buying a city centre flat would be out of reach on this salary and you would need to go further afield.

The below website apparently gives an indication of how much one can borrow, but I did it for myself and thought it came up with something way more than I would want to borrow (in terms of monthly repayments it would mean).

http://www.yourmortgage.com.au/calcu...affordability/

eddie007

Just be a bit careful... Banks are still willing to lend more than you should realistically borrow....

Well that was our experience...

We divided the amount they offered us by two and took off another 20k for good measure...

Icecube

Yep Banks are throwing money at mortgagors at the moment with discounts of up to 0.8 or even 0.9% off standard variable rates. I think this will change as money supply becomes tighter (see the USD auctions in Europe at the moment). The Oz banks have about 6 months supply of cash on hand but when they return to the International market early next year conditions will be tighter as will the conditions associated with loans.