Factors to consider in borrowing loan
Its sounds good and we feel restless to get our first home but the market scenario and one’s active life makes it harder to the take the major decisions.
Auckland property prices have been rocketing at an alarming pace. Simply for this reason RBNZ had recently imposed some lending restrictions on the banks.
While for any property purchase, the first question triggers in our mind is how much deposit do we have and how much do we need to borrow. Well, that totally depends on one’s income structure. Liabilities & responsibilities differ for every individual. Other external factor which is procuring the best fixed interest rate or leave the loan on floating, or may be combination of both.
The wisest decision is to consult an adviser who is has the knowledge, skills and expertise to help you in making these decisions.
This adviser will consider the total household Income Vs expense in your borrowing. Income either earned by a single applicant or a couple could maximize the borrowing accordingly. Also, the dependent children, the vehicles and other daily life expenses are also some crucial determinants.
Let me to put a Golden rule which gives an approximate calculation to get a loan from the banks.
Expected borrowing= Approximately 5 times of Income*
*Not considered other variables which accounts in expenses.
Browse Calculator on our web page to get your loan amount.
Copyright: Sanjeev Toora. Nov 10, 2016
Above article is copyrighter knowledge and views.