Finance

What's Your Budget?

Your budget is going to be limited by two things, your borrowing power and your personal limits.

By this we mean the banks will let you borrow a certain amount but you may set a lower limit yourself,

depending on what you are comfortable repaying. 

To establish these limits you'll need to know how much your current property is worth. You'll need to know if

you'll be using your current property to buy with. And you'll also need to make enquiries with a bank or mortgage

broker about your borrowing power. 

HELPFUL HINT: GET PRE-APPROVAL FIRST!!!

It always pays to go that little bit further and get pre-approval before making an offer on a property.

* Some things can be missed at the initial consultation and only with pre-approval can you be certain of your budget

* When negotiating the purchase of a property pre-approval provides a sense of certainty to a seller and can be the difference between an offer being accepted or rejected. 

BANK OR MORTGAGE BROKER?

Using a bank or mortgage broker is really personal preference and may come down to the relationship you have with your current finance provider. 

Banks are great for your day to day services, but if you go to them for the best mortgage deal they are only going to show you 'their' best deal. They won't tell you if a bank across the road has a better interest rate or cheaper ongoing fees. 

On top of that a reputable mortgage broker can come to you, work outside or regular business hours and look at possible options that the big four banks won't.