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We are open 7 days a week. Please contact us on 0411 229 602 or email troy@pmbg.com.au
Welcome to Perth Mortgage Broker Group
Helping With Your Dream Home
Welcome to Perth Mortgage Broker Group. We are a mortgage broking business located in Yokine, Perth. We offer a variety of home loans with many banks and lenders and we are open seven days a week. Our contact number is 0411 229 602 or email troy@pmbg.com.au.
Do Rising Interest Rates Affect What You Can Borrow
Do Rising Interest Rates Affect What You Can Borrow?
Today I will look at a question I get asked all the time. The question is, if interest rates increase, does a clients borrowing capacity change?
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The answer is yes, as interest rates increase, then what you might be able to borrow for a home loan may decrease. Every person’s situation will be different, but in essence, as interest rates increase, then your borrowing capacity will decrease as the cost to borrow money has increased.
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When banks assess how much a potential client might be able to borrow, they look at many different factors. They look at your income, other debts you may have, if you are single, or have a family. These type of things will all be taken into account, when a bank assesses how much you maybe able to borrow.
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Another thing that banks do, is they add a buffer to the interest rate of the potential home loan you maybe be applying for. Generally speaking a bank may add 3% or more, to the actual interest rate of the home loan, as a buffer, or a margin, to show that you should be able to afford any potential future interest rates increases.Â
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For example, if the actual home loan interest rate is 5%, then a bank will assess the repayments of the home loan you might be applying for at 8%, allowing for any potential future increases with home loan interest rates.
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So if the cost of borrowing increases, that is interest rates are higher, then generally speaking your borrowing capacity would decrease.
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If you have any questions at all, please contact Perth Mortgage Broker Group, or call Troy on 0411 229 602, 7 days a week
Construction Home Loans
If you are thinking of building a new home, we have many construction home loan options available.
Perth Property Reports
As part of our service, we are offering free Perth property reports on as many properties as you like.
First Home Buyers
We have a range of home loan options, and also help with applying for the Australian Government 5% deposit scheme and the first home owners grant.
Buying Your Next Home
If you are thinking about buying your next home, we can help with a variety of different options.
Investment Home Loans
We have many investment home loan options available if you are thinking of purchasing an investment property.
Compare Your Home Loan
Our obligation free online home loan health check may help you save some money, even on your existing home loan.
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0411 229 602
troy@pmbg.com.au
7b Spencer Avenue, Yokine
WA, 6060