08/07/2025
So you've found your borrowing capacity and are ready to start house hunting, but is
borrowing right up to your maximum capacity a good decision for you? What you can borrow doesn't necessarily equal what you should borrow.
Before you move forward there are three questions you should ask yourself:
1. Are you able to pay it back comfortably?
Before you start house hunting, use a budget planner to look at all your expenses for the last month. Now have a look at your monthly repayments at your maximum borrowing capacity. Is that number something you can confortably afford?
2. Would you be happy making any necessary sacrifices to make your repayments?
A lot of people look at what they can sacrifice when they budget. While that can be good, it's important to be realistic here. If you would have to cut a hobby that you love to afford your loan repayments, is that a decision you would be happy with long term?
3. Do you have any wiggle room in case your circumstances change?
If the RBA raised rates at the next meeting, or if you had a sudden, expensive vet bill to pay, would you still be able to pay your loan? Is there any room for contingency in your plan?
Give us a call today and we'll help talk you through the home buying process.
