Quinkla Posted June 20, 2016 Share Posted June 20, 2016 My experience with very similar numbers... In 2010 I took out a mortgage for $391k on a salary of $109k supporting a wife and three children. My wife had no income but we did get $700 a fortnight in child support. I'll be honest, there was no quality of life and it was a real struggle. The interest rate now is at an all time low. What might be just about affordable now could be terrible if interest rates went up. To put it into context, a 0.25% rise will add $38 a fortnight to a mortgage payment. That might not seem much. But add another one, and another one, and another one and you have an extra $154 a fortnight to find. And if interest rates went up by 2% (which they could over the course of a year or two), that would be an extra $308 a fortnight. Incidentally, the on-line mortgage calculators always give a rosy picture of what you could afford to borrow. They are there to start the conversation. In reality, banks will never lend anything even close to what the calculator says. Quote Link to comment Share on other sites More sharing options...
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