How borrowers can get an extra $90,000 in borrowing capacity with APRA's changes
In last week’s blog, we discussed how APRA’s new reform can benefit you. With borrowing institutions now allowed to use a buffer rate of 2.5 per cent, the new regulations will be beneficial for all first home buyers and homeowners who are looking into refinancing their mortgage. But when will the new changes will come in effect?
The wait won’t be long as two Australian major banks have already announced that the reform commenced on 15 July 2019, and other lenders will start catching up soon as well. While home loans are completely different in every case, some buyers can access a loan approximately 14 per cent larger than what they previously could get previously.
For example, if you are a couple with one dependant, with each borrower earning an annual salary of $60,000 and combined expenses of $2,500 per month with no other debts, your previous borrowing capacity was around $660,000. With APRA’s recent changes, the new borrowing capacity could be around $750,000. The extra amount could really make a difference in the quality of home you purchase. Use our borrowing power calculator to see how much you can borrow.
If you are a First Home Buyer or looking into refinancing your mortgage, now is the time to do so. Get in touch with Coronis Finance, who will do all the hard work for you and compare more than 40 lenders and products to find the one that’s the perfect fit for you. It costs nothing to use our services and we will help you understand how the new changes can help you reach your property dreams.