Before you start looking for an investment property you need to know how much you can afford to spend and repay.
The amount you can borrow will depend on a number of factors. Use a loan calculator to get an estimate.
Your Lender can give you an idea and/or a pre-approval on your borrowing capacity, which is usually valid for three months. This gives you an accurate estimate of what you can currently afford, taking into account:
- Your annual income;
- Your monthly expenses;
- The type of loan and current interest rate;
- Repayment type (principal or principal and interest);
- The loan term (number of years to pay the loan back); and
- Estimated repayments.