These two questions are the most important questions you need answered before you start looking for your property as the answers will determine your housing price range. How much a person can borrow depends on their financial position as per directed by the lending criteria set out by the banks, which explains why some people are able to organize a home loan through some banks and not others. How the banks calculate your financial position is determined by a few factors such as a ‘Statement of Financial Position’, a loan serviceability calculation and proof but in a basic nutshell your financial position is calculated by the sum of your income minus your expenditure. Once you know your price range you are then able to determine the amount of deposit you will required. Your deposit will depend on the best product for your needs as all products require different deposit amounts. Please speak to a financial planner for more information.

Below is an indicative calculator which will give you an indication of how much you are able to borrow:

With over 15 years experience, we have access to every bank in Australia. By completing one of our application forms you will not only have the peace of mind that we will manage your application process from application stage to approval and post settlement phases but you will only need to undergo one approval process.  Australian Financial is a financial licensee holder and is able to provide sound advice to our home loan customers to best determine your individual requirements and situation.

For example, John Citizen was looking to buy an investment property which had been valued at $300,000. John sat down with a qualified financial planner and together they reviewed his financial position. The financial planner recommended the best product for John was a ‘Balanced Term Loan’ because John’s financial position passed the serviceability calculation and had a savings deposit of $15,000 and $45,000 equity in his own home and was able to pay the government taxes upfront. From the consultation, John knew that he was able to start negotiating with the vendor of the investment property as he had the sound advice backed by the quality product.

Depending on your individual needs and requirements, there will be varying documents required however general documentation required will be certified copies of proof of identity, proof of income and details of any legal representation you may have.

For example, if you are refinancing your existing home loan then you will need 6 months statements of all secured debts. Or if you are looking to buy and investment property through your superannuation fund then you will need to provide documentation to our Financial Planners to set up your Self Managed Super Fund Trust Deed.

Working out what the total cost of your home loan will be will be best determined by your individual needs and requirements. Depending on your situation you may need to budget for:

• Inspection Costs;
• Conveyancing Costs;
• Stamp Duty and other government costs; and
• Set up costs such as an application fee, charges for additional features you may requirement from your loan
• Legal representation and legal fees, also known as contract costs
• Lenders Mortgage Insurance if you only have a small deposit

If you are a First Home Owner then you maybe entitle to The First Home Owner Grant (FHOG) scheme. The scheme, which was introduced on 1 July 2000 to offset the effect of the GST on home ownership is a national scheme and funded by the states and territories and administered under their own legislation. If you are eligible then you can apply to receive a one-off grant of up to $7000. For more information please visit the official government First Home Owners Grant website http://www.firsthome.gov.au/.

For further information on individual states and territories please visit their official government websites:

• New South Wales
• Queensland
• Victoria
• Western Australia
• South Australia
• Tasmania
• ACT
• Northern Territory