Ozzie Mortgage Salary Multiplier
 

Hi Folks

Could anyone tell me what a mortgage lender will typically lend you as a multiplier of your salary in ozzie dollars?

Cheers

Phil

Re: Ozzie Mortgage Salary Multiplier
 

Have been told by several different people that the mortgage companies don't really work on salary multiples in Auz. Instead that base what they lend you on what you can afford after general living expenses.

This may be wrong, but it's what I've been told by different people so would be good if somebody else could just confirm this.

Thanks.

Re: Ozzie Mortgage Salary Multiplier
 

If you have the deposit the banks will lend you way more than you can afford in the knowledge that if you default there is plenty of capital left in the house.

Re: Ozzie Mortgage Salary Multiplier
 

The basis of most mortgage providers for property is that you have at least 10% deposit. In addition to this, they look at your free cash flow. they look at your current credit card limits. The key is to reduce your limit as they look at the maximum you can draw from it and use is as a basis of your normal spending habits. They also look at other assets you might have, but it is usually worked out on your free cashflow after tax and whether the property is being rented or owner occupied.

To give you an idea, there is a calculator online at:

http://hlc1.westpac.com.au/hlc/hlc/Splash.do

This should help you out. Note: In some cases there are duties to be paid on buying a place, so you will need these saved up before you buy.

George
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