Work Sheet

Borrow less than you can afford and you’ll be happy. Borrow more and you are set for misery.
Banks want to lend you money, which is good for their business.
But you can’t afford to bite off more than you can chew.
It’s important to be realistic and only borrow how much you can repay without costing you and your family heartbreaks.
We’ll discuss how much you can afford to borrow, but this worksheet will give you an indication as to how much it is safe for you to borrow.

CALCULATE WHAT YOU CAN AFFORD:
Savings per month $…………
Rent per month $…………
Add these figures $…………
This is how much you can pay for your mortgage/ month.

OR, if you really like spaghetti on toast or rice and dhal, try this:
A. Family income (yours and your partner’s) / month $…………
B. Expenses:
Bills $…………
Rent $…………
Car $…………
Insurance $…………
Taxes $…………
Fees $…………
Phone $…………
Student loan repayments $…………
Child related expenses $…………
Hygiene and health care $…………
Pets $…………
Groceries $…………
Entertainment $…………
Holidays (averaged/month) $…………
Hobbies $…………
Clothing $…………

Add the figures under B.

Subtract B from A $…………
This is about how much you can repay monthly.

Beyond the cost of buying a house and moving, there are a number of upfront fees, other than just your mortgage costs. You need to take these into account when working out your overall budget.

Major upfront costs
Once you have an idea of your purchase price, there are other charges you will need to consider.
• The deposit for your home loan, which is usually 10-20% of the purchase price, will be one of your biggest initial expenses. You should also allow for taxes, legal costs and insurance associated with buying a property.
• Moving house cost
• Buying indispensable furniture (beds, sofas, wardrobes etc), whiteware, lawn mower, etc.

Monthly costs:
Mortgage repayments, water, and rates – best paid as often as you are paid
Ongoing costs: repairs and maintenance
Leaseholders’ costs: rent for the land the house is on (if not owned by you) – can increase in time.

Do your sums and talk to us. We are here to help.

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