Posts Tagged ‘realestate wa’
How Much Can You Afford To Borrow? Tips To A Better Home Loan In WA.
September 15th, 2010 | 
Author: Many home buyers don’t realise how much they can afford to borrow, along with other basic lending details, until they actually apply for a loan. This situation is not ideal because an informed home buyer is always in a much better position to make an offer on a property.
Up until about ten years ago, the rule for buying a home was that you could borrow about three times your gross household income. For example, if a couple was making $110,000 between them in a year, a bank might loan up to $330,000.
This rule of thumb doesn’t apply terribly well today with house prices having grown so much. In January this year, the median purchase price for first home buyer in Western Australia was $400,000.
Of course, the price will vary depending on the suburb you are interested in. For example, in 2010, the median purchase price in the popular suburb of Subiaco was $1.3 million while in Kardinya is was $600,000. You can research other Western Australian real estate prices at the REIWA web site.
One way to a smooth start with a home loan is to have a healthy deposit. If you don’t have a deposit, it’s a good idea to start a regular savings program in preparation. Lenders do require evidence of savings before approving a home loan.
It’s not always a good idea to put all your savings into the purchase of a new home. It’s wise to have a cash reserve of at least two months mortgage repayments to cover unexpected costs.
Talk to your financial institution or mortgage broker about the deposit. Most prefer a deposit of around 10 per cent the purchase price, but this is becoming unrealistic. Deposits of 5 per cent are now common.
Ask your lender to outline, in detail, all the fees that apply to the loan. Remember to including mortgage costs, mortgage insurance, stamp duty or any other fees that may apply. All these costs are added to your home loan. Don’t worry about how much the bank will allow you to borrow, rather concentrate on how much you can comfortably afford.
For more information about home affordability and applying for a home loan, please visit www.reiwa.com.au
Oakleaf Plantation is an upscale family community located on the Westside of Jacksonville Florida. The Real Estate in the Oakleaf Plantation area is shared by Jcksonville, FL in Duval and Orange Park, FL in Clay county. This community resembles a small city that provides all types of recreation and shopping. If you are looking to move to Oakleaf Plantation Jacksonville, Florida. I must say that Oakleaf Plantation is an area I would encourage you to visit the Oakleaf area to tour the many neighborhoods.
OakleafPlantationSales.com is not affiliated with Hutson Land Development or the builders in Oakleaf Plantation.