What Home Loan Can I Afford?

When determining the discretionary income available for the client’s bond repayment, we typically use the following formula:

Monthly gross income;
LESS: statutory deductions (tax);
LESS: monthly living expenses;
LESS: contractual expenses (credit agreement repayments);
LESS: maintenance obligations for dependents;
EQUALS: Discretionary income available for bond repayment.

The banks typically do not allow your monthly bond repayment to go over 30% of your gross income.

Refer to our Home Loan Affordability Table to check the maximum loan amount you’d qualify for. Also know that not all income is assessed equally. For example, if you receive commissions or overtime, you must prove to the bank that you receive this every month for it to be considered as income.

How will my Credit Score Affect My Home Loan Application?

Using the Experian credit scorecard, your credit score will sit in the following ranges:

Other adverse alerts/warnings that could affect chances of approval include:

• Under debt review / debt counselling / debt restructuring
• Judgements and disputes
• Existing accounts in arrears

What Loan Amount Will I Qualify For?

The banks’ criteria for the maximum loan-to-value (LTV) depends on the applicant type. LTV is the loan amount offered by the bank, divided by the purchase price of the property. LTV criteria differs bank to bank, but typical ranges for a residential property include the following:

Minimum Documents Required For Your Application

Key steps in the Home Loan Registration Process

All information on this sheet should be used as a guide only. Although every effort has been made to ensure the accuracy of the contents, Phoenix Group and its Subsidiaries accept no liability in respect of any errors contained herein. Each bank has the ability to assess applications at their discretion and your bond originator will support and advise you through this process if need be.