While a certain someone may think it’s our hipster café lifestyle that’s preventing us from affording property, rough calculations of his smashed avocado theory are that you would need to forgo your Sunday smashed avo and feta brunch for 20 years before affording the average home loan deposit.
Then of course there are all the variables – how pricey is your café, the times you might also shout your friends, CPI increases… it’s not very accurate at all.
Thankfully there are tools out there to help you truly understand your home loan affordability.
One that I’ve recently been using to calculate another home loan – because you know, the mortgage to build our home hasn’t scared me off borrowing enough, I’m now thinking I’d like to take on a renovation project – is the Home Loan Borrowing Calculator on the People’s Choice Credit Union website.
Using this calculator, I can adjust the term of the loan (from 1 to 30 years), input my income and expenses and voilà, it crunches the numbers to tell me approximately how much I can borrow, what my monthly repayments would be and total interest payable.
I also find it handy that I can adjust mine and my husband’s income and put in our rental earnings to see how the results change.
Depending on your borrowing needs, you might like to play around with the other calculators on their website including loads of other home loan calculators, personal loan calculators and insurance calculators.
It’s these online tools, and their competitive rates, that contributed to People’s Choice Credit Union recently being named CANSTAR’s 2016 First Home Buyer Customer Owned Institute of the Year SA.
To celebrate the win, People’s Choice has reduced its three-year fixed home loan package rate for first home buyers to 3.74%p.a. * (comparison rate 4.83%p.a.).
Now that’s called having your smashed avo and eating it too!
If you want to support the global movement towards customer owned banking, you can find out more about this new low rate, use any of their online tools or even begin an application for a home loan on their website here.
Have you been on the hunt for a home loan lately? What information have you found helpful to calculate your borrowing capacity or ways to save on your home loan?
Why not make yourself a cuppa and explore the range of calculators on the People’s Choice website and possibly get the ball rolling on your next big dream!
Terms, conditions, fees, charges and lending criteria apply and are available on application.*To be eligible for a Home Loan Package, you must have minimum borrowings of $150,000 and your pay must be deposited into a People’s Choice account. The comparison rate is current as at 19 August 2016 and is subject to change without notice. Home Loan Rate available for first home buyers only (each borrower on the loan must have never previously owned a residential property (either separately or jointly with another person)). Investment Loans are excluded from this offer. After the fixed period, loan reverts to applicable Variable Home Loan Package rate at the time, determined by total home lending balance. Current Variable Home Loan Package rate for $150,000 is 4.71%p.a., comparison rate 5.09%p.a. The comparison rate is based on a $150,000 loan over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. You should consider our Product Disclosure Statement and/or other Disclosure Documents. This information and advice is provided without reference to your personal circumstances so you should consider whether this product fits your objectives, financial situation and needs. People’s Choice Credit Union, a trading name of Australian Central Credit Union Ltd, ABN 11 087 651 125 Australian Credit Licence (244310).