Hi. I am looking to sell my townhouse in Brisbane and upgrade to a house. My question is: "what is the general rule regarding ones monthly replayments and income"? If my repayments are 40% of the monthly net income, am I over borrowing? I don't have any other major expenses other than the norm (food, rates etc).
Hi There,
The Australian average is approx. 20% of gross income spent on loan repayments – or approx 27% of net income, depending on your MTR.
Approximately 8% of folk are at or over 50% of their gross income. So if they earn $60k per annum gross, then their loan repayments are approx. $30,000 p.a. That would make the repayments at about 66% of their net income.
This is considered to be mortgage stress!
You would certainly qualify for a loan, I would just recommend doing a good budget.
Chris White | Pillar Property
http://www.pillarproperty.com.au/
Email Me | Phone MeThe Property Investment Specialists
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