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When it comes to a buying a home, making a budget is very important. Knowing how much you can borrow and what your repayments will be is a great start. You will also need to work out how much money you need to manage your everyday living expenses and other financial commitments – so you are confident you can meet your home loan repayments.

Here are some key things to consider:


Your income is one of the main considerations for any Lender. Having a strong savings history with minimal credit card debt or other loans repayments will help you further. When determining your affordability, do the calculations.  Generally, repayments shouldn’t be more than 1/3rd of your gross salary/monthly income.


Make sure you can maintain your living standards when paying off your loan. There may be regular monthly expenses to factor in, such as, utility bills (e.g. electricity, gas, internet connection), car registration, food, transport, clothing, education, health insurance and healthcare costs. Any additional credit card or personal loans are best consolidated and paid off to put you in the best financial position prior to taking out a home loan.

Savings and Credit Rating

You may be required to supply proof of savings at the time of application. Generally this will be in the form of account statements or even evidence of continuous rental payment history for a time period of 6 months. Essentially this will strengthen your application by showing evidence of a consistent savings plan for a deposit and timely repayments.

Get a clearer idea before you start house hunting with our Budgeting Guide.

Westpac Tip:

You have to consider not just the purchase price of the property but also the purchase costs. The other costs you'll need to budget for when you buy your home may include Government stamp duty and solicitor fees. See more in our Upfront Costs section.


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Things you should know

Credit criteria, fees, charges, terms and conditions apply. This information has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.