Budgeting is an essential skill when you’re buying any kind of property. Working out your personal budget and sticking to it is the key to affording and maintaining a home loan. A good budget will factor in all of your regular and irregular expenses, including household essentials, debts, transport, insurance, medical costs and personal spending.
A Tassie mortgage consultant can give you essential tips on developing a budget that will help you stay on track and get organised. You can also use our Budget Calculator to get a start on your personal budget.
The maximum loan available is 95% of the property’s value. This is called the loan to value ratio (LVR). The LVR is not based on the purchase price of a property, but on the value set by an independent valuer engaged by the bank. Many banks currently have a maximum LVR of 90%, but you will need at least 5% of the property value as a deposit. You’ll also need to factor in additional costs associated with buying a home, when saving for your deposit.
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