Ours is going from mid $4000s a month to mid $6000s when our 3 year fixed rate ends next year. We’ll be able to manage it but I’m not looking forward to it.
I won't say what minr is because I feel for the people posting theirs but mines like 50% less then yours . That's the different 10 years makes and also buying the cheapest house in the suburb at the time.
Median weekly earnings is currently [$1250](https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/employee-earnings/latest-release). If you earn less than $6000/month you're in the majority.
What is your interest rate when paying that much? Ours is around $3.2k a month, $585k refinanced including LMO (fixed rate ended just after the increases started).
We’re just under **$7,000/month**.
Both working weekends as casual hospitality staff to make ends meet.
Good chance we will not be able to replay loan before I die, and partner will have to sell eventually.
So... out of curiosity, do you have a plan for what happens in 2 years when your fixed rate stops? I mean if interest rates are about the same as now you will be looking at 500 a week or thereabouts right?
We’re paying **$1,564pw**. Per week!
Got an RSA to work weekends at bars to help make payments, don’t want to have to move after all the work I did to fix our home.
If you don’t mind responding, what sort of household income gets you a $500 weekly repayment. We are looking at a single income equivalent of 80-90k and it’s only getting us around a loan of 200-250k. :(
49k (after tax) civil engineer + 9k DSP
Roughly $2.2k a fortnight. Potential mortgage looking at around 220k + 80k deposit + 100k from 25% government share = 400k house.
Go nuts on the numbers.
I’m not sure how the government share part works, but I’d assume you’d have to pay that back in one way or another (reducing borrowing capacity), additionally we don’t know your financial circumstances re: other loans/credit cards etc. and you’re talking about a ~300k loan with an 80k deposit, not 220 + 80.
With those couple of things in mind, and the additional risk of a single income family, the numbers seem reasonable to me, but I could be wrong.
Something is very wrong there. I was on $78k when I got my $413k loan. $570pw.
Try CBA for one that lends heaps.
Only other thing is if you have a HECS debt or kids that could be what is cutting a lot off your borrowing potential.
Talk to a broker. When I bought my second house I went straight to my bank I held my existing mortgage with and they said I couldn't even borrow $300k. I then spoke to a broker who said I could easily get approved for around $700k. Long story short, the best deal the broker had was with my existing bank who said I could borrow $300k, they lent me $350k through the broker no problem.
holy.... surely you've considered downsizing? one statement alone isn't enough to grasp your situation but that seems to be an extraordinarily high amount
And commute for 2 hours one way to work and school?
I guess it works for some, depending on the type of work that you do. It's not really viable for others. It's also relative to the type of pay you can get for some jobs. E.g. you won't be making 300k+ as a lawyer or tech worker in Emu Plains, but maybe you could in some other trades.
When finance was approved (July 2022) estimated repayments were $3500. Settled September 2022 and payments are at ~$5,000 right now. It’s tough, especially on a single income. Genuinely not sure what I’m going to do with the next two projected increases.
Go through your bank statements and PayPal, cancel all subscriptions. Start learning how to cook vego food and find a bulk food grocer like coco’s or go to farmers markets just before close, you’d be surprised how many meals a $20 pasta bake with veggies lasts.
If you have credit cards that you pay interest on, consolidate them into an interest free period one, can the old accounts and never activate your card.
Stop buying coffee out unless it’s networking, swap for a plunger or v60.
Or screw all of that, call a recruiter and pick up a few extra hours work at an hourly rate. Good luck (excuse the unsolicited advice, I acknowledge you didn’t actually ask).
I already looked into interest only but it was only going to be marginally less and as I wouldn’t be paying off any principal I’d end up worse off in the long term.
Absolute hard no to a house mate, especially a student. I have a very quiet, private and peaceful life with no room for a stranger in my home.
When I first bought end 2020, repayments like 2540, now they are almost 4k. This is only on a 600kish loan so I can only imagine the pain others are going through
Started build start of 2021. Moved in toward end of 21. Was on a low two year fixed rate. Paying 450 a week on a bit over 500k.
Fixed rate ran out last week. Bank wanted to put us on 8.7 or something insane. Was about to fix for 3 years at 6.22 but broker got Variable option down to 5.85 so should be paying just under 700ish a week now.
Paid my hecs off a week before so got to enjoy the extra pay bump for a week. It kind of cancels out the raise tho. But at least we haven't really gone backwards which is more than others can say.
Yeah one thing I noticed with fixed rate loans is, when the fixed portion runs out they put you on an insanely high rate. I can’t work it out - assume they’re expecting people will be too lazy to change banks.
You’d be shocked how many people do zero work to find a good rate. People just rock up to the bank they’ve been with since they were a dollarmite and say one mortgage plz.
That’s horrifying to me, but I guess it’s a mindset shift. Once I realised how interchangeable home loan vendors are I became much more comfortable shopping around.
Me too! We’re fastidious about never paying the lazy tax where possible. We’ve changed banks 3 times in the 10 years since we bought our place, change insurances every year for the best deal etc. Even though we’re ~65% fixed now, I still got the bank to drop our variable rate twice over the last year just by asking. I don’t know why you wouldn’t.
I don’t think you can re-mortgage without paying LMI again if you don’t have the equity to do it. So if you don’t have the equity you end up staying with the same bank with no choice but to pay whatever interest rate they offer you.
I’d love to stand corrected on this.
I pay $2300 a month fixed for 3 years. Bought March 2023. I used the Victoria First Home Buyer program so 25% of the purchase price is mortgage free i.e the state holds that till I pay them back. I'm a single income purchaser but did not borrow to my max.
So easy. The bank will co-ordinate (not all banks do it though). But would advise not doing a 45 day settlement like me, I had to work hard to get it across the finish line.
Purchased a year ago at around or slightly below 5% now at just above 6% with around 8.8k p/m in payments which is up from around 6k.
Banks do a stress test with a higher interest rate when they consider your serviceability with a loan so people who have had one in the last year should be able to meet repayments even though interest rates have gone up.
Wow how did you know my name?
But yes it’s close to 100k a year.
I have a day job but most of my money comes from a business I run on the side that’s similar to drop shipping but not drop shipping.
This is reassuring to see. We purchased for 710k paying 4k a month. You seem to have a better rate. Might approach my bank or visit my mortgage broker!
The other scheme that is fantastic is the Vic gov will take a 25% equity in the home. You have 5% deposit (plus stamp duty and fees) and borrow 70%. Income is capped at around $130k for a single and $208k for a couple - something like that. Gets reviewed every couple of years and over time you can buy the equity from the gov or when you sell they get 25% of the (hopefully) increase in value. It means you can buy a place with 75% of the cost as you don’t have to pay interest on the 25% - the gov shares in the capital gain
Are you me? Everything you've just described is pretty bang on for the circumstances my partner and I were in and the path we took.
What did you manage to get for $700k?
Bought a super modest townhouse on the outskirts of a capital city 18 months ago for $330K. I didn't want the stress of being solely responsible for continually increasing mortgage repayments while having to try and keep feeding my kids.
Bought in May-22. 950k loan, 2700 fortnightly payment.
Feels like I work for a whole month just to pay the banks.
Hoping this rate rise will ease down in future so we could resume other projects in life.
Agreed, not expecting anything anytime soon. Maybe couple of year down the line. Even inflation would be settling down a bit, which would also be a relief.
Coming off fixed, 930k loan so roughly will be 5600 p/m.
It’s about 600 more than “living in comfort” on a single income so we’re just bleeding the offset to top up the payments from what I can comfortably afford, can go this way for about 5-6 years assuming my income doesn’t move - and i don’t get any bonuses. Bonuses and the like will top it up pretty comfortably.
Bought a year ago. $480k apartment, $380k loan. Started repayments at $1900 a month, they’ve only gone up to about $2280 with $30k in the offset so I’m fine and can pretty comfortably pay up to about $3k a month, but I’d have to chill on my discretionary spending if it gets to that - I’m single, so I spend a lot going out most weekends and go to a lot of gigs, all of this currently eats up probably close $1000 a month.
Settled in June 2022. Repayments started at 1750 per month. Now 2450 pm. It's sad seeing so much go to waste in interest but we bought well within our means (and very far below our max borrowing capacity) so we are very comfortable. I couldn't imagine trying to deal with double the mortgage.
Bought end of 2021, gone up a lot (luckily we kept it low).
However, Mortgage (only) is still just below our rent we were paying until we moved, and the rent for the place has gone up.
People fail to realise that inflation shrinks the real value of your debt over time.
Your rent could easily go up every single year, but your mortgage repayments aren't likely to.
Many homeowners therefore pay more than equivalent rent in the early years of their purchase, then end up paying less than rent over time.
And when paying rent, the extra money you save (and theoretically can invest) in those first few years of your mortgage (plus the opportunity cost of your deposit) doesn't really make buying out and out more financially beneficial than renting.
There are other benefits to owning, I like to own, but we shouldn't just tell one side of the story and pretend it's a guarantee that buying is phenomenally better.
> but we shouldn't just tell one side of the story and pretend it's a guarantee that buying is phenomenally better.
Sorry to burst your bubble, but owning ***is*** phenomenally better over the long-term from a financial perspective.
That said, renting suits some people's lifestyles better and that is ok.
Why would you need a model? It makes sense that your mortgage, which only goes up and down with interest rates, gets relatively cheaper over time.
Everything today will seem cheap when coffee hits $11 and apartment living is the norm because almost nobody can afford to buy a house.
It’s true - but you would have to be disciplined. I know that because I have to pay my mortgage I do it - if I had to save the same amount i would eat into it because there would be something I just happened to “need”….like a new lounge suite
bought january 2023 - 710k fixed at 5.44? = 4k per month. it is a lot. we were fine till we were hit with about 5k worth of medical bills.
the only tip i have - which was passed on to us, is to get rid of all the bnpl things, and live quiet. i just copped a 1000 fine which i dont know how i will pay
Purchased June 2022. Luckily managed to find an affordable house on a decent sized block close to schools and shops for $365,000. Repayments until recently were $370 a week and have jumped to $500 a week after the 1 year fixed rate ended. A little more expensive then renting in the area when you factor in rates and water but definitely worth it.
1. Fixed rate just ended 2 months ago. I was paying $1,300 p/m, now it jumped up to $2,023 p/m.
2. Vacant land at $1,300 p/m
3. Construction will begin next january for $450,000, not sure how much do I need to pay p/m
So yea.....
Bought a place a few months ago. More than 80% of my monthly payment is interest. I'm overpaying as much as possible because that's a crazy amount of interest every month.
bought in June. 1.19m loan, 7150/m between 2 people.
idk its not that bad. get paid 8.2k a month, 3.6k goes to mortgage.
if it was single income for sure it would be tough but bank wouldn't give that amount anyway
How are people affording this!?!??!
I get paid roughly $9k per month and couldn’t afford $7k per month. Well, I guess I could if my wife made anything close to half my salary, but she earns less AND works 3 days per week.
So yeah, that seems crazy. I pay $2900 per month.
Bought just over 2 years ago. Owe $550k on a split loan. locked in fixed rate at 2.5% for 5 years on 80% of the loan, and variable the other 20%. Currently paying $600 pw.
$6200 per month. Started at $4k before the rate rises. Had to sell 2 investment properties as our savings was getting eaten into each month. Paid 1.3 for a house in Melb south east
I hate loans so we bought cheap in Perth, still only 20 minutes drive from the city though. $360k, started at 76% LVR 18 months ago, our required monthly payment is $1,600 but we have averaged $6,600 over that time if you count offset/redraw. Was always worried I’d be locked into debt for 30 years but at this rate and with a job swap for a 30% pay rise optimistically it’ll be paid off in another 18 months. DINK if you want to know how we afford it.
Bought 2020, 2 yr fixed, repayments gone from 3150 per mth (which was a tad more than rent i was paying), to 4800k+ or something. Single guy, not even bought a house, just small apartment, Sydney sux. Im financially fukd.
Some of the people here are beginners.
~$1.9m loan amount. Mortgage is ~12k per month. Split amongst two.
Still need to go outside to take a shower, to a pretty horrendous bathroom.
In a good part of town though, with double off street parking, decent block size, plus a great approved DA which we can’t afford to build any more 😂
In the low $500s before tax, including super.
Just got promoted, so am hoping the bonus is good. My partner doesn’t get a bonus, so any savings are on me to accumulate this year.
We probably wouldn’t be able to get that kind of loan if we tried to do it now.
Lol.
No way bro your struggling on 500k income to pay 1.9m loan.
It's about 140k a year at 7% interest.
You still have 100k after tax to spent a year.as a couple you will have more.
What's your lifestyle like?
Started at $825, and before we even made our first it went up to $9ish, then got a rate reduction after 6 months it’s now $887/wk.
Purchased December/January this year. In the process of moving all my inheritance into the redraw minus a few thousand so we can not gaf about the interest rate :)
Edit sorry this is weekly- monthly something around $3560 or something
.
My partner and I are in the process of building. It is expected that upon completion of the build our repayments will be around $3,380 per month (at current interests rate). Total house and land price was $666,000. We put down a 20% deposit and had the FHBG of $10,000 which was helpful.
We should be fine as our combined income is around $185,000 per year. Not amazing but also not terrible. Will be tight when we drop an income for maternity reasons. Hopefully interest rates go down before that happens lol.
Been in my house a year on Saturday just gone. Repayments have gone up to $392/week from $374 I think. Can't complain, was paying $375/week rent prior to buying
I bought:
Apartment in 2020 - 384k loan, SVR P&I minimum repayments were $1586 monthly before but now its $2120
House in 2020 - 1.39m loan (with parents as co-borrowers), Fixed P&I repayments at 1.99% are $5113 monthly but will increase in December - Parents encouraging me to sell to ease pressure
House in 2023 - 910k loan (80% LVR), SVR P&I repayments are $5612 (not the minimum)
Wife and I brought in October last year, settled end of November. 850k loan with a 20% deposit. We brought well under our comfortable threshold as it's our first property and we just had our first child in May last year. Repayments just pushing above 5k a month. We are still putting extra into the offset. Glad we played it smart.
Not in the last year but I bought 6 years ago at 1.9% and now I'm paying 6.46%.
I'm lucky I only needed to borrow about 350k at the time and for the first 3 years I overpaid my repayments. Ive been made reduntant twice in those 6 years so even this relatively small mortgage has been a stress.
I can't imagine what people who stretched themselves at such low rates are going through now.
$6300 for us! And that's with $500k still locked in at 2.34%. But we've made $700k in equity in two years. It would be at least $1750-$2000 a week to rent a similar property in our area though so at least we are making money
Almost $4000k and will be going up tomorrow again. We are managing bills for the time but feeling pretty stressed now. If there are a couple more hikes we are in shits.
SINK. Settled November 2022. ~$500k loan which was the max borrowing. First repayment was $2,620. Current repayment is $2,950. I was barely saving any money - squirrelling away maybe $100 each pay check if I was lucky. Then I’d get my annual insurance bills etc and my savings would severely deplete. Getting a housemate this month and I’ll be doing a lot better. Some of these loan/repayment amounts are making me grateful mine aren’t anywhere near as high.
Reading the posts here and how much people are paying just gave me panic attacks. How much are you guys earning? I’m hoping this is dual income. Still saving up for DP but i feel like running now.
$1000 a month. We used to be paying $500 because it was a smaller mortgage (townhouse) and we had fixed interest in the 2s. But we were getting priced out of our neighbourhood so got pressured. Apparently the place has gone up around $80k in 6 months so there's no way we could afford it had it been on sale now.
I thought I was doing bad. But when I go thru the posts there seems to be lot of people on the same boat. How are we surviving as an economy with house prices still moving up?
Settled in 2020 with approx 900k mortgage, fixed for 1.89%. About to roll off and have secured 5.74% variable. "Happy" with the rate we have found but still going to be a shock. I've bought all the xmas presents already because I know it's going to be a quieter period of life soon... 🙃
We are about to come off our two year fix in Dec. Payment going to go from $4k to almost $7k on just shy of $1m. Over $5k a month is pure interest payment. I’ll pick up some extra work, sad that the cost of inflation has to be me spending less time with my kids in the crucial years but that’s what makes prices lower apparently
We bought this year, just as the rates held for 4 months. It was a relief for sure that along with buying and moving expenses the mortgage wasn't also going up.
This will be our first one and will be about $300 extra a month.
Settled end of Oct 2022 for \~$258k loan for an old house at $310k in a town in Tas.
Interest started at 5.49% with minimum repayment $1,380/month.
1 year later, interest at 6.74% with minimum repayment $579/fortnight (roughly $1,158/month). Yeah we have paid off about 25% of the total loan.
We’re just under $6000/month. Brutal
Ours is going from mid $4000s a month to mid $6000s when our 3 year fixed rate ends next year. We’ll be able to manage it but I’m not looking forward to it.
The opposite, 2.5% fixed right now, going to 6+% next year :/
Jfc that makes me glad to pay 2.2k a month rent
I won't say what minr is because I feel for the people posting theirs but mines like 50% less then yours . That's the different 10 years makes and also buying the cheapest house in the suburb at the time.
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lol, weekly repayment is more than I earn
It’s more than many people earn (individually) after tax
Median weekly earnings is currently [$1250](https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/employee-earnings/latest-release). If you earn less than $6000/month you're in the majority.
We're getting there, too. 600k loan
What is your interest rate when paying that much? Ours is around $3.2k a month, $585k refinanced including LMO (fixed rate ended just after the increases started).
Your interest rate is too high if you’re paying close to $6k on a $600k loan. Ours is not even $4k on a $600k loan, and is variable.
Depends how long left to run on the loan too.
What interest rate?
We’re just under **$7,000/month**. Both working weekends as casual hospitality staff to make ends meet. Good chance we will not be able to replay loan before I die, and partner will have to sell eventually.
Bought a 475k property in a town, 1.5 hrs outside a big city. Borrowed 380k. $500 weekly repayment
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So... out of curiosity, do you have a plan for what happens in 2 years when your fixed rate stops? I mean if interest rates are about the same as now you will be looking at 500 a week or thereabouts right?
I got it down to $136.50 a week. But a decade and a cheap house will do that.
We’re paying **$1,564pw**. Per week! Got an RSA to work weekends at bars to help make payments, don’t want to have to move after all the work I did to fix our home.
If you don’t mind responding, what sort of household income gets you a $500 weekly repayment. We are looking at a single income equivalent of 80-90k and it’s only getting us around a loan of 200-250k. :(
Single income has a much higher risk profile.
49k (after tax) civil engineer + 9k DSP Roughly $2.2k a fortnight. Potential mortgage looking at around 220k + 80k deposit + 100k from 25% government share = 400k house. Go nuts on the numbers.
I’m not sure how the government share part works, but I’d assume you’d have to pay that back in one way or another (reducing borrowing capacity), additionally we don’t know your financial circumstances re: other loans/credit cards etc. and you’re talking about a ~300k loan with an 80k deposit, not 220 + 80. With those couple of things in mind, and the additional risk of a single income family, the numbers seem reasonable to me, but I could be wrong.
Something is very wrong there. I was on $78k when I got my $413k loan. $570pw. Try CBA for one that lends heaps. Only other thing is if you have a HECS debt or kids that could be what is cutting a lot off your borrowing potential.
CBA is running all their mortgage application servicing through with a 10% interest rate.
Talk to a broker. When I bought my second house I went straight to my bank I held my existing mortgage with and they said I couldn't even borrow $300k. I then spoke to a broker who said I could easily get approved for around $700k. Long story short, the best deal the broker had was with my existing bank who said I could borrow $300k, they lent me $350k through the broker no problem.
Hello! My loan is $330k I pay $490 per week I'm on 85k per year single income.
Do you pay your mortgage every week ?
$7280 a month and we are struggling. hardly can afford food on the table last couple of weeks
Good luck my dude
They are gonna raise interest rates again, I wish you the best, try prepare yourself for it
holy.... surely you've considered downsizing? one statement alone isn't enough to grasp your situation but that seems to be an extraordinarily high amount
Downsizing to what? That's the mortgage on a 1.5m loan. What can you buy in Sydney for less than 1.5m other than a studio apartment in penrith?
Get out of inner Sydney?? Emu plains has houses at 900k, or are people beyond going west?
And commute for 2 hours one way to work and school? I guess it works for some, depending on the type of work that you do. It's not really viable for others. It's also relative to the type of pay you can get for some jobs. E.g. you won't be making 300k+ as a lawyer or tech worker in Emu Plains, but maybe you could in some other trades.
Move up to the Central Coast and buy 2 freestanding places for the same amount? 😕
I bought a 2br apartment in Pyrmont for 1.1 last week, it's bad but not that bad.
Same here my dude, hang in there, reach out to any support places if needed, don't feel ashamed
Ouchy. I hope that’s a duel income. Surely eating is better than living in a 1.5million dollar place?
Wtf did you buy half a castle or something 😂
That would be a slightly above average property in Sydney...
When finance was approved (July 2022) estimated repayments were $3500. Settled September 2022 and payments are at ~$5,000 right now. It’s tough, especially on a single income. Genuinely not sure what I’m going to do with the next two projected increases.
$60k mortgage on a single income? What’re you gonna do?
I don’t know. I’m not even hot enough for OF any more. 🥲
How good are your feet
The market for feet pics is hot rn, bullish
Fr, don't have to be hot to sell feet pics. Just be able to tolerate the squish of jelly between your toesies.
Farts in a jar?
There's always a market.
Go through your bank statements and PayPal, cancel all subscriptions. Start learning how to cook vego food and find a bulk food grocer like coco’s or go to farmers markets just before close, you’d be surprised how many meals a $20 pasta bake with veggies lasts. If you have credit cards that you pay interest on, consolidate them into an interest free period one, can the old accounts and never activate your card. Stop buying coffee out unless it’s networking, swap for a plunger or v60. Or screw all of that, call a recruiter and pick up a few extra hours work at an hourly rate. Good luck (excuse the unsolicited advice, I acknowledge you didn’t actually ask).
You could revert to interest only for a couple of years if it starts to get too tight. Another option is renting a room to a student??
I already looked into interest only but it was only going to be marginally less and as I wouldn’t be paying off any principal I’d end up worse off in the long term. Absolute hard no to a house mate, especially a student. I have a very quiet, private and peaceful life with no room for a stranger in my home.
But surely you would do this before you had to sell the place? If you have other options the situation cannot be too dire, yet.
Nope. I’d sooner move in with my parents and rent it out completely.
Ahh those types of housemates are ok! Good for you, not everyone has this option.
I would be the same re the tenant. Well…it looks like you’ll have to take up Uber driving or OF :)
Bought a 800k house a few weeks ago, borrowed \~700k. Repayments are just under $2000 fortnightly.
Your repayments seem a bit low
Can confirm they are accurate for a 6.09% interest rate!
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Rest in peace
So $120k/year?
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You must make great coffee!
You idiot, He is in his 3rd year giving people something to hold onto when they use the stairs!
That’s a stable way to earn an income.
I wouldn’t sleep at night with a loan that big
Holy hell hope you've had some capital growth since then
When I first bought end 2020, repayments like 2540, now they are almost 4k. This is only on a 600kish loan so I can only imagine the pain others are going through
Started build start of 2021. Moved in toward end of 21. Was on a low two year fixed rate. Paying 450 a week on a bit over 500k. Fixed rate ran out last week. Bank wanted to put us on 8.7 or something insane. Was about to fix for 3 years at 6.22 but broker got Variable option down to 5.85 so should be paying just under 700ish a week now. Paid my hecs off a week before so got to enjoy the extra pay bump for a week. It kind of cancels out the raise tho. But at least we haven't really gone backwards which is more than others can say.
Yeah one thing I noticed with fixed rate loans is, when the fixed portion runs out they put you on an insanely high rate. I can’t work it out - assume they’re expecting people will be too lazy to change banks.
You’d be shocked how many people do zero work to find a good rate. People just rock up to the bank they’ve been with since they were a dollarmite and say one mortgage plz.
That’s horrifying to me, but I guess it’s a mindset shift. Once I realised how interchangeable home loan vendors are I became much more comfortable shopping around.
Me too! We’re fastidious about never paying the lazy tax where possible. We’ve changed banks 3 times in the 10 years since we bought our place, change insurances every year for the best deal etc. Even though we’re ~65% fixed now, I still got the bank to drop our variable rate twice over the last year just by asking. I don’t know why you wouldn’t.
Yep they are counting on ppl paying the lazy tax I think
I don’t think you can re-mortgage without paying LMI again if you don’t have the equity to do it. So if you don’t have the equity you end up staying with the same bank with no choice but to pay whatever interest rate they offer you. I’d love to stand corrected on this.
I pay $2300 a month fixed for 3 years. Bought March 2023. I used the Victoria First Home Buyer program so 25% of the purchase price is mortgage free i.e the state holds that till I pay them back. I'm a single income purchaser but did not borrow to my max.
Look at this scheme (and the federal one). How easy was it to navigate/gain approval?
So easy. The bank will co-ordinate (not all banks do it though). But would advise not doing a 45 day settlement like me, I had to work hard to get it across the finish line.
Very easy if you qualify. Bank sets it up and sends you one form.
Purchased a year ago at around or slightly below 5% now at just above 6% with around 8.8k p/m in payments which is up from around 6k. Banks do a stress test with a higher interest rate when they consider your serviceability with a loan so people who have had one in the last year should be able to meet repayments even though interest rates have gone up.
So your mortgage repayments are $100k per year? What do you do? Rob banks?
Wow how did you know my name? But yes it’s close to 100k a year. I have a day job but most of my money comes from a business I run on the side that’s similar to drop shipping but not drop shipping.
I know a Rob Banks. Best name ever.
There's an oxymoron. Got a mortgage... the bank is the one doing the robbery.
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This is reassuring to see. We purchased for 710k paying 4k a month. You seem to have a better rate. Might approach my bank or visit my mortgage broker!
Using the vic gov 5% deposit scheme, or just wearing the LMI? Mind if I ask income levels?
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Nicely done 👍🏻
So many people don't know about the federal scheme. Helped us get in so much quicker.
Yep! That's why going to a broker can be so helpful because they'll do everything they can to help you.
The other scheme that is fantastic is the Vic gov will take a 25% equity in the home. You have 5% deposit (plus stamp duty and fees) and borrow 70%. Income is capped at around $130k for a single and $208k for a couple - something like that. Gets reviewed every couple of years and over time you can buy the equity from the gov or when you sell they get 25% of the (hopefully) increase in value. It means you can buy a place with 75% of the cost as you don’t have to pay interest on the 25% - the gov shares in the capital gain
Are you me? Everything you've just described is pretty bang on for the circumstances my partner and I were in and the path we took. What did you manage to get for $700k?
Bought a super modest townhouse on the outskirts of a capital city 18 months ago for $330K. I didn't want the stress of being solely responsible for continually increasing mortgage repayments while having to try and keep feeding my kids.
$6500 per month Just me paying it. You get used to canned tuna
Wow this cant be sustainable my goodness
These comments honestly shook me. I cannot fathom how people are affording all of this!
Bought in May-22. 950k loan, 2700 fortnightly payment. Feels like I work for a whole month just to pay the banks. Hoping this rate rise will ease down in future so we could resume other projects in life.
The state of the AUD vs USD right now I assume rates won't be going down for a little while. I'd rather our currency not sink tbh...
Agreed, not expecting anything anytime soon. Maybe couple of year down the line. Even inflation would be settling down a bit, which would also be a relief.
$4.7k at the moment. It hurts. Just saw that Westpac has made a tidy 7.2 billion in profit. That makes it hurt even more.
Coming off fixed, 930k loan so roughly will be 5600 p/m. It’s about 600 more than “living in comfort” on a single income so we’re just bleeding the offset to top up the payments from what I can comfortably afford, can go this way for about 5-6 years assuming my income doesn’t move - and i don’t get any bonuses. Bonuses and the like will top it up pretty comfortably.
Bought a year ago. $480k apartment, $380k loan. Started repayments at $1900 a month, they’ve only gone up to about $2280 with $30k in the offset so I’m fine and can pretty comfortably pay up to about $3k a month, but I’d have to chill on my discretionary spending if it gets to that - I’m single, so I spend a lot going out most weekends and go to a lot of gigs, all of this currently eats up probably close $1000 a month.
Settled in June 2022. Repayments started at 1750 per month. Now 2450 pm. It's sad seeing so much go to waste in interest but we bought well within our means (and very far below our max borrowing capacity) so we are very comfortable. I couldn't imagine trying to deal with double the mortgage.
Bought end of 2021, gone up a lot (luckily we kept it low). However, Mortgage (only) is still just below our rent we were paying until we moved, and the rent for the place has gone up.
People fail to realise that inflation shrinks the real value of your debt over time. Your rent could easily go up every single year, but your mortgage repayments aren't likely to. Many homeowners therefore pay more than equivalent rent in the early years of their purchase, then end up paying less than rent over time.
And when paying rent, the extra money you save (and theoretically can invest) in those first few years of your mortgage (plus the opportunity cost of your deposit) doesn't really make buying out and out more financially beneficial than renting. There are other benefits to owning, I like to own, but we shouldn't just tell one side of the story and pretend it's a guarantee that buying is phenomenally better.
> but we shouldn't just tell one side of the story and pretend it's a guarantee that buying is phenomenally better. Sorry to burst your bubble, but owning ***is*** phenomenally better over the long-term from a financial perspective. That said, renting suits some people's lifestyles better and that is ok.
I’ve been wondering about this a lot actually. I think you’re right. Wouldn’t mind seeing a hypothetical model that demonstrates it on excel
Why would you need a model? It makes sense that your mortgage, which only goes up and down with interest rates, gets relatively cheaper over time. Everything today will seem cheap when coffee hits $11 and apartment living is the norm because almost nobody can afford to buy a house.
It’s true - but you would have to be disciplined. I know that because I have to pay my mortgage I do it - if I had to save the same amount i would eat into it because there would be something I just happened to “need”….like a new lounge suite
$13k a month, variable currently 5.7ish%
Relieved to see similar repayments to ours. We are $13.8k at 5.84%
That is insane. $160k per year!?!?
Your weekly mortgage is more than my fortnightly pay. Do you live in a castle?
Bought in June. 760k, 20% deposit, paying back around $4k/month. It’s stressful.
What would rent be on a similar property?
More than $500 per week.
Who are you? Not the original commentor lol
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General rule used to be divide the house price by 1000 for weekly rent. Now its all wobbly and stupid.
bought january 2023 - 710k fixed at 5.44? = 4k per month. it is a lot. we were fine till we were hit with about 5k worth of medical bills. the only tip i have - which was passed on to us, is to get rid of all the bnpl things, and live quiet. i just copped a 1000 fine which i dont know how i will pay
Currently \~$5050p/m which is >$1600p/m more than it was when we signed in May22. Love that for us.
$10k per month. Likely $15-16k once rates roll over. Everything is fine 😬😀
Can I ask what loan you got and interest rate?
CBA 2.49% for now 🤪
Purchased June 2022. Luckily managed to find an affordable house on a decent sized block close to schools and shops for $365,000. Repayments until recently were $370 a week and have jumped to $500 a week after the 1 year fixed rate ended. A little more expensive then renting in the area when you factor in rates and water but definitely worth it.
Will be buying soon. Approx $3300 a month. Solo.
Oof. Good luck tomorrow. 😂
1. Fixed rate just ended 2 months ago. I was paying $1,300 p/m, now it jumped up to $2,023 p/m. 2. Vacant land at $1,300 p/m 3. Construction will begin next january for $450,000, not sure how much do I need to pay p/m So yea.....
I'm going to variable with 440k next week and repayments at 5.99% are $2740pm. Just to give you an idea.
Bought a place a few months ago. More than 80% of my monthly payment is interest. I'm overpaying as much as possible because that's a crazy amount of interest every month.
bought in June. 1.19m loan, 7150/m between 2 people. idk its not that bad. get paid 8.2k a month, 3.6k goes to mortgage. if it was single income for sure it would be tough but bank wouldn't give that amount anyway
How are people affording this!?!??! I get paid roughly $9k per month and couldn’t afford $7k per month. Well, I guess I could if my wife made anything close to half my salary, but she earns less AND works 3 days per week. So yeah, that seems crazy. I pay $2900 per month.
My wife earns similar / more than me Wouldn't be possible otherwise.
Purchased way below my means, and I'm so grateful. Morgage to gross income ratio of about 1. Repayments went from around $300/week to $500/week.
Bought just over 2 years ago. Owe $550k on a split loan. locked in fixed rate at 2.5% for 5 years on 80% of the loan, and variable the other 20%. Currently paying $600 pw.
$6200 per month. Started at $4k before the rate rises. Had to sell 2 investment properties as our savings was getting eaten into each month. Paid 1.3 for a house in Melb south east
About 4.5k on a 750k loan.
Bought a $1m house last year. Payment's are nearing $4,800.
800k X 6% * 2 mortgages. 5k per month x2
I hate loans so we bought cheap in Perth, still only 20 minutes drive from the city though. $360k, started at 76% LVR 18 months ago, our required monthly payment is $1,600 but we have averaged $6,600 over that time if you count offset/redraw. Was always worried I’d be locked into debt for 30 years but at this rate and with a job swap for a 30% pay rise optimistically it’ll be paid off in another 18 months. DINK if you want to know how we afford it.
$2200 per month. Rent here would be $2800 per month.
Bought 2020, 2 yr fixed, repayments gone from 3150 per mth (which was a tad more than rent i was paying), to 4800k+ or something. Single guy, not even bought a house, just small apartment, Sydney sux. Im financially fukd.
Started at $3600 currently at $5050 in the last 12 months, hasn’t been the most fun but surviving for now
I’m reading the comments here and praying that the apocalypse has occurred by the time my fixed rate ends in 2025.
Some of the people here are beginners. ~$1.9m loan amount. Mortgage is ~12k per month. Split amongst two. Still need to go outside to take a shower, to a pretty horrendous bathroom. In a good part of town though, with double off street parking, decent block size, plus a great approved DA which we can’t afford to build any more 😂
Holy crap. What combined income if you don’t me asking to service that?
In the low $500s before tax, including super. Just got promoted, so am hoping the bonus is good. My partner doesn’t get a bonus, so any savings are on me to accumulate this year. We probably wouldn’t be able to get that kind of loan if we tried to do it now.
Lol. No way bro your struggling on 500k income to pay 1.9m loan. It's about 140k a year at 7% interest. You still have 100k after tax to spent a year.as a couple you will have more. What's your lifestyle like?
I’m convinced everyone on these subreddits earns over 500k. Never heard of any of their businesses but they’re all on reddit somehow 🤔
About $4.5k per month. Not too bad.
Started at $825, and before we even made our first it went up to $9ish, then got a rate reduction after 6 months it’s now $887/wk. Purchased December/January this year. In the process of moving all my inheritance into the redraw minus a few thousand so we can not gaf about the interest rate :) Edit sorry this is weekly- monthly something around $3560 or something .
My partner and I are in the process of building. It is expected that upon completion of the build our repayments will be around $3,380 per month (at current interests rate). Total house and land price was $666,000. We put down a 20% deposit and had the FHBG of $10,000 which was helpful. We should be fine as our combined income is around $185,000 per year. Not amazing but also not terrible. Will be tight when we drop an income for maternity reasons. Hopefully interest rates go down before that happens lol.
Bought Jan 2022, $440k mortgage, repayments currently just over $2.5k month, still to comfortably stay on top but I didn't stretch my borrowing power
$1600 a month on a 4x1. 11 minute commute to work, pretty happy
Been in my house a year on Saturday just gone. Repayments have gone up to $392/week from $374 I think. Can't complain, was paying $375/week rent prior to buying
I bought: Apartment in 2020 - 384k loan, SVR P&I minimum repayments were $1586 monthly before but now its $2120 House in 2020 - 1.39m loan (with parents as co-borrowers), Fixed P&I repayments at 1.99% are $5113 monthly but will increase in December - Parents encouraging me to sell to ease pressure House in 2023 - 910k loan (80% LVR), SVR P&I repayments are $5612 (not the minimum)
Just a little under $4k/month
Apartment. 15k from CBD. 90%LVR. Closed 2 months ago. $800/wk. Single income. 😭😭😭
Up 50%. Brutal as fek.
How does anybody in this thread even afford anything?
We just bought a house and the loan is 757k and we are on 6% paying roughly mid $4k with a single income
Atm around $9k per month Next year will be around $11-12k
$8400 per month
Can someone here explain how they are able to pay these and still live cause W.T.F
wide hurry soup person quiet ring doll wakeful scarce bored *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Wife and I brought in October last year, settled end of November. 850k loan with a 20% deposit. We brought well under our comfortable threshold as it's our first property and we just had our first child in May last year. Repayments just pushing above 5k a month. We are still putting extra into the offset. Glad we played it smart.
I live with my parents who pay $18k/m
Bought our first home in August for 1.3. Repayments are around 6000 per month. Fortunate for this to not put a dent in the budget at all
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Not in the last year but I bought 6 years ago at 1.9% and now I'm paying 6.46%. I'm lucky I only needed to borrow about 350k at the time and for the first 3 years I overpaid my repayments. Ive been made reduntant twice in those 6 years so even this relatively small mortgage has been a stress. I can't imagine what people who stretched themselves at such low rates are going through now.
Purchased a year ago for 700k saved drastically 2 years prior paid off 300k in that time and currently pay $470 a week or $1880 a month
$6300 for us! And that's with $500k still locked in at 2.34%. But we've made $700k in equity in two years. It would be at least $1750-$2000 a week to rent a similar property in our area though so at least we are making money
Paid 440k in south east for a cosy 2 bed apartment Borrowed 350k Right now paying around 2070 a month
Bought ~half a year ago, ~$2.8M, 20% deposit plus ~200k in offset. The 13k p/m certainly stings but it’s in line with what we budgeted for.
Almost $4000k and will be going up tomorrow again. We are managing bills for the time but feeling pretty stressed now. If there are a couple more hikes we are in shits.
$16k per month, interest only till next year 💀 fixed for one year.
SINK. Settled November 2022. ~$500k loan which was the max borrowing. First repayment was $2,620. Current repayment is $2,950. I was barely saving any money - squirrelling away maybe $100 each pay check if I was lucky. Then I’d get my annual insurance bills etc and my savings would severely deplete. Getting a housemate this month and I’ll be doing a lot better. Some of these loan/repayment amounts are making me grateful mine aren’t anywhere near as high.
Reading the posts here and how much people are paying just gave me panic attacks. How much are you guys earning? I’m hoping this is dual income. Still saving up for DP but i feel like running now.
$1000 a month. We used to be paying $500 because it was a smaller mortgage (townhouse) and we had fixed interest in the 2s. But we were getting priced out of our neighbourhood so got pressured. Apparently the place has gone up around $80k in 6 months so there's no way we could afford it had it been on sale now.
I thought I was doing bad. But when I go thru the posts there seems to be lot of people on the same boat. How are we surviving as an economy with house prices still moving up?
Bought about 18 months ago. Was paying $3250 more $5500. It’s so brutal. We’re surviving
Settled in 2020 with approx 900k mortgage, fixed for 1.89%. About to roll off and have secured 5.74% variable. "Happy" with the rate we have found but still going to be a shock. I've bought all the xmas presents already because I know it's going to be a quieter period of life soon... 🙃
People in his thread paying more that my total income..
We are about to come off our two year fix in Dec. Payment going to go from $4k to almost $7k on just shy of $1m. Over $5k a month is pure interest payment. I’ll pick up some extra work, sad that the cost of inflation has to be me spending less time with my kids in the crucial years but that’s what makes prices lower apparently
Purchased Nov 2021. About $8400 a month. $1.4m mortgage.
We bought this year, just as the rates held for 4 months. It was a relief for sure that along with buying and moving expenses the mortgage wasn't also going up. This will be our first one and will be about $300 extra a month.
We are 4800 per month, with another rate rise today pushing it to 5k Brutal
may 2022 we settled the min repayment was 1400pm now 2300pm
Bought mid 2021 for 650k, mortgage of 500k. Now mortgage of 460kish, with ~ 200k offset. Repayments are like 3000 a month?
Settled end of Oct 2022 for \~$258k loan for an old house at $310k in a town in Tas. Interest started at 5.49% with minimum repayment $1,380/month. 1 year later, interest at 6.74% with minimum repayment $579/fortnight (roughly $1,158/month). Yeah we have paid off about 25% of the total loan.