What does my rent buy me?

Ever wondered how much house you could afford based on the rent you currently pay?

This handy calculator will help answer that question for you.

It is designed to give you an estimate to help you prepare for that big step.

Use this calculator to work out the equivalent loan based on your current rent payments. Then add to this your deposit and presto, now you have an indication of the potential purchase range subject of course to the lending criteria of the bank.

You will need to allow in your plan for additional costs such as valuations, legal costs, moving expenses etc so talk to your advisor to find out what you need to know, they can often negotiate contributions from the bank on your behalf to cover some of these costs.

Current Monthly Rent Loan Term Interest Rate

Estimated Loan Amount: $500,000

Need help building a plan to save your deposit faster?

Two important things to know

1. Make your mortgage application count

Every time you make an application that is declined this affects your future applications.

Working with a professional advisor (in most cases free to you) means your mortgage application won’t be submitted until it has the best chance of being approved.

Don’t be in a rush for an approval, better to slow down the process and get approved than to rush it and create barriers to your approval.

Find yourself a trusted advisor and stay with them. If you need help contact me, I can point you in the right direction.

I work alongside a number of brokers assisting their clients to be better equipped to manage the financial challenges of home ownership.

I can connect you in to the right hands for your situation.

2. Credit card limits and short term debts reduce your ability to borrow

A general rule of thumb is that for every $1,000 you owe or have available to access on your card reduces your borrowing power by an estimated $5,000

This means if you have $10,000 of credit card limits, balances owing or other debts your purchase price reduces by a whopping $50,000 +/-

The best thing you can do is reduce these limits or eliminate the debt and avoid taking on more.