There are a number of things that need to be taken care of before you begin your search for property in Brunswick, and one of the most important to establish early on is your borrowing capacity.
When applying for a home loan, your borrowing capacity is the amount a lender is willing to lend towards your property investment.
This amount is influenced by a number of factors – namely, the amount of your deposit, the value of your property, and your current income and savings.
While not all lenders have the same criteria, these are in place to ensure that there is a reasonable expectation that you will be able to make your repayments.
You can estimate your borrowing capacity with relative ease by making use of an online home loan calculator. Inputting your income and expenses will rank you against the available home loans on the market.
However, as mentioned earlier, this is only an estimate. Before you start to actively search, enlist the help of a mortgage broker to get a more definite, accurate reading on your borrowing capacity.
This can help to streamline your property search by giving you an idea about the types of property you can afford and limiting the value of the properties you investigate.