Thinking of Buying a House?


What is a mortgage?

A mortgage is a term used when someone lends you money taking your house as security - commonly known as a home loan. The lender is most often a bank and the fact that the house is being used as security is noted on the certificate of title of the property. For all you need to know about mortgages, check out our guide to mortgages.


How much can I borrow?

Before you even start looking for a house, think about how much you would like to spend and find out how much you can borrow. Some banks websites have a 'how much can I borrow' calculator and this will give you a rough guide of how much they will lend you for a home loan to buy a house.

Westpac has a good calculator. Banks' online calculators are usually very simplified and can be inaccurate. So before you make any decisions based on them, make sure you talk to the bank or a mortgage broker.

Any potential lender will assess your personal circumstances thoroughly and make you an offer of finance (hopefully!). You may find that they will offer you a lot more than what you are after, or unfortunately, you may not be able to borrow anywhere near the amount of money you want. In some circumstances, you may find it difficult to get any offer of finance at all - if this is the case - your best shot for a home loan may be to contact a mortgage broker for help.

Want to find out more about mortgage brokers? All you need to know is in our mortgage broker guide.

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