Q: What are the factors to know how much I can borrow with a first home owners loan?
A: The amount you can borrow with a First Home Owners Loan will depend on several factors, including:
- The state or territory you live in
Each state and territory government in Australia sets different borrowing limits for their First Home Owners Loan scheme. These limits are designed to reflect the cost of living in different areas and to ensure that the scheme is accessible to as many people as possible.
- Your income and expenses
Your income and expenses will also impact how much you can borrow with a First Home Owners Loan. Lenders will look at your income, as well as any expenses you have, such as credit card debt or car loans, to determine how much you can afford to borrow.
- The purchase price of the property
The purchase price of the property you’re looking to buy will also impact how much you can borrow with a First Home Owners Loan. Generally, you’ll be able to borrow up to a certain percentage of the purchase price of the property. The exact percentage will depend on the state or territory you live in.
- The size of your deposit
The size of your deposit will also impact how much you can borrow with a First Home Owners Loan. Generally, the larger your deposit, the more you’ll be able to borrow. This is because lenders will see you as less of a risk if you have more money saved.
