Brenda’s Path to Financing a $700,000 Home
Securing a property in today’s market demands precise financial planning. Brenda aims to buy a $700,000 non-SMSF home, and with a solid strategy, it’s within reach.
Brenda’s Financial Snapshot
With a primary PAYG salary of $187,000 plus $10,000 from her side venture, Brenda’s total annual income stands at $197,000.
Yearly Obligations
- Annual rent: $44,200
- Car loan repayments: $5,544
- Living expenses for two dependents: ~$30,000
Total annual expenses: $79,744, leaving an average surplus of $5,606 per month.
Estimating Borrowing Capacity
Assuming a 6.5% interest rate, a 9.5% serviceability buffer, over a 30-year term, Brenda can borrow approximately $650,000–$670,000. That supports a purchase price up to roughly $722,000 when including deposit and Lenders Mortgage Insurance (LMI).
Upfront Costs
- Desired deposit: $70,000
- Stamp duty, LMI & legal fees: ~$52,070
Total required funds: $122,070
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Building the Deposit
Brenda currently has no dedicated savings. By allocating 50% of her monthly surplus (~$2,800) to a deposit fund, she could reach $122,070 in about 3.6 years—around early 2029.
Acceleration Strategies
- Boost side-business income to ~$60,000/year
- Explore family support to supplement the deposit or cover fees
Next Steps
Engaging a mortgage broker can fast-track pre-approval, optimise LMI premiums, and refine deposit strategies. With her strong income and disciplined savings plan, Brenda’s $700,000 property goal is well within reach.
Ready to refine your property plan? Explore tailored advice today and turn your real estate ambitions into reality.
