How Much Can I Borrow for a Mortgage Based on My Income?
Most homebuyers understand that the amount they can borrow for a mortgage depends on their income. There is more to the equation. For example, it’s great to earn a net income of $1 million. However, if the homebuyer’s expenses are near $1 million too, a cushion for the monthly repayments don’t exist.
Several guidelines exist that lay out how much a homebuyer can borrow to finance a home purchase. For example, it helps if your income is three times your monthly repayment amount. Another way to look at it is your monthly repayment doesn’t take more than 33% of your monthly or annual net income.
Falling into a middle-income bracket doesn’t disqualify a homebuyer from purchasing a home. It lowers the amount they can borrow. It’s OK to start with a smaller home. Then build toward a larger one in a few years. The Australian government continues to come up with ways to help Australians become homeowners.
Many believe that it’s the first step toward building wealth. The homeowner also builds equity. That equity becomes a great leverage tool toward a larger home down the road.
Mortgage House provides several online tools that help homebuyers gauge their borrowing power. Each tool is free and has no strings attached. Try our mortgage calculator.
Borrow for a Mortgage Based on Income Conclusion
Mortgage House loan specialists help homebuyers understand how much they can borrow for a mortgage. Plus our online tools help you gauge your borrowing power with no strings attached. For more information, contact our team.