Reply With QuoteWe have been working it all out if the interest rates rise quite high, we aren't after much more though, only an extra $10,000-$15,000. Would mean the difference between a 2br unit and a 3br house!
Registered User
Exactly!
He is speaking the truthIt is possible to borrow a higher amount if you take out a loan on a lower interest rate than your borrowing capacity was based on. If you are concerned about it, get the bank or broker to run your serviceability again based on the lower interest rate of the loan product you think you'd apply for so you have an exact figure. Generally we like to be on the safe side (ie. borrowing a little bit less than your maximum borrowing capacity) to ensure that the loan goes through no problems.
Gee, I hope that makes sense, let me know if you want me to explain it more
The thing is, if they assessed your affordability on todays interest rates and their calculation showed you could afford it, what happens if the interest rates go up tomorrow? That is why they base it on a higher rate than the current interest rates. Hope this makes sense
2013 BellyBelly RAK Recipient.
We have been working it all out if the interest rates rise quite high, we aren't after much more though, only an extra $10,000-$15,000. Would mean the difference between a 2br unit and a 3br house!
Bookmarks