There are many factors contributing to how much money you can afford. Your mortgage capabilities are determined by the following factors:
- The income of individual(s) the house's name will be under
- Your expenses and lifestyle
- Your budget
The income of individual(s) the house's name will be under
Before starting with a home loan, it’s important to consider your ability to pay off your repayments. If you’re applying for the home loan jointly with another person, your repayment capacity may be greater, which can mean greater borrowing power.
Your expenses and lifestyle
You'll need to take a close look at your living expenses, to ensure you can realistically afford the repayments and maintain a standard of living you are comfortable with.
It is important to review your personal budget prior to investing. This will allow you to assess the amount of debt you can take on and the mortgage repayments you can afford if the rental income does not cover the total costs of the investment. This is a long-term commitment and the last thing you want is to have to sell your investment property prematurely due to cash-flow problems. Take into account potential income and lifestyle changes.
You may borrow as much as you can, however, if you bought the right house, but can't afford other things you really need, it is not worth it.
Our mortgage repayment calculator can help you, according to today's interest rate, estimate the payment amount you need.
Our mortgage intermediary will help you assemble your budget and confirm what your ideal loan amount is.
If you are self-employed, you can still apply for housing loans:
1. The file for all financing loans, self-employed person need to provide the following materials to verify income:
- Personal and corporate tax rebates, income statement, balance sheet, tax assessment, etc for the past two years
2. The file for low financing loans, self-employed person shall provide the following materials to verify income:
- Proof that at least one borrower is self-employed
- All of the borrowers' loan statements
- Business activity statement or bank statement may need to provided
For faster and more smooth loan approval, the lender will need to provide the following materials:
- Your Driver's License and copy of Passport, Birth Certificate or Healthcare Card Number
- Two recent payrolls/taxes (May need to submit more than two years)
- A copy of the bank account statement listing the last six months.
Depending on the individual situation, the lender may be required to provide additional/different material.