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What percentage of my salary for mortgage?


For most people, the monthly mortgage repayment is their biggest expense.  Owning your own home is a major achievement that most people feel very proud of.  However, how much you spend on your mortgage really depends on a number of factors such as your income, your lifestyle and your other outgoing expenses.

As a general rule,  the upper limit for repayments should never exceed 35 per cent of your weekly pre-tax income (or 30% of your combined income for joint borrowers).

When considering your mortgage repayment amounts, also think about the other costs you may be paying on top, such as insurance, and also look into whether you can make early repayments without charge.

To discuss your mortgage with someone local, contact Your Local Finance Broker.

 

Found in: Article (848), Section (56)

Australian Borrowers Face Greater Risks

houses, to potentially greater financial shock if high unemployment and interest rates, alongside a collapse of residential property values, were to occur,'' said Standard & Poor's credit analyst Vera Chaplin.
Found under: Industry

Queensland First Home Buyers, Lowest in 6 Years

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Found under: First Home Buyers

RBA's Lowe Speech Shows the Two Sides of the Crisis

mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} endif--> There are risks on both sides of the interest rate outlook. ... nations confront are impending disadvantage for the international economy.
Found under: Industry > Interest Rates

Perth First Home Buyers Market Down

mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} endif--> The end of the first-home owners grant, coupled with unrelenting interest rate hikes concludes into the collapse of ...
Found under: First Home Buyers

Brisbane and Perth, Most Expensive Homes in Australia

and Perth are the most expensive cities to buy a home in Australia, the Council of Australian Governments Reform Council report shows. ... of its before-tax income on mortgage repayments,” stated in the report.

Focus on Homeloan Weakens Economic Growth

"This is ultimately bad for growth, bad for competition, bad for jobs, bad for business and in the end bad for Australia,'' Healy adds. ... continue to endure the impact of higher funding costs while pressure on banks intensified.

NAB Satisfaction Picks Up while Westpac Fall

NAB’s improved customer satisfaction rating can be brought by a number of factors like basic banking fees reduction and enhanced home loan pricing. ... suffers a decline of 1.4 percentage points for the last six months after it published above-market increase in home loan rates in 2009.

Interest rates on hold - RBA

According to RP Data analyst Cameron Kusher this decision is influenced by the raft of less positive economic data both domestic and international since last month. ... time there is no justification for major banks to lift interest rates independently of the RBA, especially when their actions in curtailing lending for residential development are already harming the new ...
Found under: Industry > Interest Rates

Credit Cards Debts Surpass Mortgage Repayments

This new research shows that credit card repayment is now the main form of household debt. ... debts have exceeded mortgage debts for the June quarter, reports the Melbourne Institute's Household Saving and Investment.
Found under: Industry

Additional $4000 Grant for First Home Buyers

Queensland Government will give an additional $4000 grant to first home buyers in areas outside of south east Queensland. ... good shot in the arm for areas outside the south east, but long-term, the effects could be negative,'' Kusher warned.

Bank Fee Income Reaches $12.7B

This is attributed to the refinance of home loans to move from fixed rate to variable rate loans, the direction most customers took when interest rates fell. ... their loan books to account for higher funding costs, the Reserve Bank of Australia's June quarter bulletin, released on Thursday said.
Found under: Banks

Housing Costs in Sydney Increasing

This is due to factors such as migration and influx of high income purchasers, according to Justin Smirk, chief economist for St.

Low Interest Rates Lead to Higher Debt

But while evidence suggests increased levels of debt have not left Australian households over-exposed, pockets of stress remain, RBA deputy governor Ric Battellino said. ... increased in household debt ratios for many years and which means the forces that drove the climb in household debt ratios are not distinct to Australia.
Found under: Industry > Interest Rates

Credit Unions Gaining Market Share

The downfall of unregulated lenders over the last three years thus resulted to 30% increase in new loans supplied by credit unions and building societies. ... increased from 6.4% to 8.6% for a year period.

Increased Super Benefits and Tax Breaks on the Verge

The savings tax break will give 50 % discount on the first $1000 of interest income earned annually. ... lower their taxes by $500 for work-related expenses, without having to substantiate the expenses.

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