First Home Buyer's Guide

Setting your budget

This really come down to what you want, where you want it and what you can afford.


What do you want

It may be helpful to build a list of must haves and good to haves. Do you really need 5 bedrooms and a triple garage or is something you can live without.


Where you want it

The old saying ‘worst house in the best street’ is still good property advice. Prices can vary widely between suburbs and once you know what you are willing to live with (and without) you can start to build a picture of where are the places you can get it.


What you can afford

This is a hot topic in lending right now. How can you really work out what a person should be allowed to borrow? How can you really determine what living expenses are discretionary or essential. To some a weekly manny paddy is essential, to me it’s


A very quick rule of thumb is to work out the maximum amount you’d be happy to pay a month now,

multiply that figure by 2.5 then add two zeros on to the end of that.


Each lender has a different way of calculating what they think your maximum capacity should be and these figures can differ by hundreds of thousands.


Pro tip: Speak to an expert. They can help you work out your borrowing capacity and help you understand the impact of things like increased rates.

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Parker Lane is a trading name of Upside Downside Pty Ltd. Australian Credit License Number 482276

The information contained in this website may not be current or complete, or may not remain current or complete, and therefore under no circumstances should be relied upon. No warranty or representations as to its accuracy or completeness is provided. We are not liable to your or any other person for loss, damage or injury arising from the use of, or reliance on, this information, including but not limited to loss suffered in connection with incorrect or out of date information. It is not intended to be a substitute for professional financial advice and does not purport to guarantee any projected amount of borrowings. All applications for credit are subject to normal credit approval criteria. Parker Lane specifically disclaims any responsibility or liability for any losses or damages arising from any use of or reliance upon any calculations or conclusions reached using this website. See our credit guide for further details.