I know it depends on costs, no. of family members, etc.
We have 4 kids. What percentage of peoples incomes do they spend on their mortgage?
As of tomorrow we have no mortgage, but are in negotiations on a house and not sure how far to go.
Any rough ideas would be great.
+ Reply to Thread
Results 1 to 10 of 34
07-10-2014 19:36 #1
House loan - what percentage is reasonable/unreasonable?
07-10-2014 19:45 #2
In rent we currently pay around 33% of df's income. I currently am not working.
We are looking at a house to buy and with the current excellent interest rates we would be paying 30-28%.
I personally don't fancy paying any more than that.
07-10-2014 19:53 #3Senior Member
- Join Date
- Oct 2013
Our mortgage is about 30% of our income, if we had different cars and dd wasn't in full time day care we could comfortably go higher, up to 50%. I don't know how well you can gauge this by % eg 30% of 100k leaves a lot less than 30% of 200k.
07-10-2014 19:56 #4
I don't think we can go above 1/3 of his wage either, particularly when I'm not working.
We've put one figure forward and they want $40k more. 1/3 of DH's wage would only let us put it up by another $10k.
07-10-2014 19:57 #5
DH is on a teacher's wage if that helps...so not $200k.
07-10-2014 20:00 #6Senior Member
- Join Date
- Oct 2013
If you have any doubts don't do it. What will happen if you max the loan and rates increase?
07-10-2014 20:06 #7
Just make sure you factor in a huge increase in rates. Current rates are at a all time low...
Percentage is hard to tell as it depends on the size of your salary.
I'd advise that you check your budget and how much you pent on rent for the last 12 months + how much you saved. Take 80% of that amount and that should be your maximum repayment at increase rate.
The Following User Says Thank You to ExcuseMyFrench For This Useful Post:
07-10-2014 20:23 #8
We are now paying about 50% of DP BASE wage. Given he'll then also earn at least another 25k in overtime and its also not factoring in my wage either.
Even at 50% we are quite comfortable. Mind you we only have one baby on the way. So a touch different
The Following User Says Thank You to MummaCat For This Useful Post:
07-10-2014 20:24 #9
Thank you for your input. It's good to have some different perspectives and ideas to consider. I don't want to get caught short - Could I ask where the 80% comes from?
We've been paying off our first home loan and then our second car. Tomorrow we will be in the positives by $1k.
We are mindful of the rates - our other loan we paid off at 7%. Would try for the 5 year fixed at the moment. Planning on going back to work in a few years as we've just had our last bub. Not counting on government payments either due to what was proposed for the budget this year and may pass through government next year! Can afford repayments as is now and should have second income before rates go up if we fix it. What do you think?
07-10-2014 20:24 #10
How long has the house been in the market for? If its a long while, it's probably just a bluff to get more money.
One of my biggest regrets in buying my first house is not saying no. I think I could have gotten it at least 12k cheaper, considering it had been listed for a good while.
Counter their offer with 5 or so more than your original offer and then wait I see what they counter with. If its a decent drop they may be willing to go lower again. If they stay firm on the 40 I would walk away.
By nudge88 in forum General ChatReplies: 41Last Post: 21-05-2014, 08:16
By bellasmiles in forum Issues with Family MembersReplies: 47Last Post: 12-03-2014, 21:19
Little Kickers NSWLittle Kickers was launched in 2002 in the UK and arrived Down Under in 2009. Our motto is “Play not Push” and we ...
LATESTWhat is a blessing way? How is it different to a baby shower?7 ways to break the ‘mumnotony’ at homeGuide to government family benefit payments
POPULARWhen can I start giving chores to my children?New baby nursery checklist – a guide to newborn essentialsWhat to pack for labour and hospital – a checklist
FORUMS - chatting now ...
Support group, gay/lesbian planning pregnancySame Sex Parents
IVF babies due June/July/August 2017pregnancy and babies through IVF
Would you breastfeed in public?General Parenting Tips, Advice & Chat
TTC #1 - Conception & Due Date TimingConception & Fertility General Chat
Neighbours 30 years - 2015Movies / Music / Books / TV Chat
3 year old with mouth ulcersGeneral Child Health Issues
Help with baby names please!Choosing Baby Names
A - Z of baby girl namesGames & fun stuff