I would like to get some advice on the maximum percentage I could borrow as a first home buyer. I have $53,000 available for a deposit and my salary is $87,000... thanks?

Hi Mark, it's really hard to say without knowing your overall financial situation. As a general guide, a salary of $87k may be eligible to borrow up to $600k. That's if single and no dependants and no other debts or credit cards and a basic lifestyle with a good credit history.
In NSW, FHOG of $10k is available for properties up to $600k (must be a new property), or if building, up to $750k. And $0 stamp duty.
Most vendors require a 10% deposit, so $53k is 10% of $530k. You can get away with less deposit however depending on vendor's requirements.
You may be able to borrow up to 95% of the property value. Anything over 80% requires lenders mortgage insurance (LMI) - which will be in the thousands and can be added to your total loan amount.
You can avoid LMI if you have a family member who is willing to use equity in their home as a partial security guarantee to get the LVR (loan to value ratio) down to 80%.
Hope this helps give you an idea anyway. Let me know if you'd like some assistance.
Kind Regards
Caroline Pollard
Bayside Finance Solutions

Hi Mark,

As Caroline said, it is hard to be specific without knowing your situation in detail as there are a number of factors that that will determine the price point you can purchase at.

Firstly, different lenders will assess your borrowing capacity and ability to repay a loan slightly differently, just some rough numbers around that would be $500k on the low end and $600k on the high end. (based on income only)

Another factor to consider is the percentage of the property value, some lenders will allow up to 95% of the property value including lenders mortgage insurance.

There are options available to avoid lenders mortgage insurance such as family guarantees but again different lenders will apply this policy slightly differently.

There are also costs involved in purchasing a home such as legal fees, pest and building inspections etc. Keep in mind too that in NSW stamp duty exemption is available for first home buyers for properties up to $650,000 and concessions apply between $650,000 and $800,000.

Keep in mind that this information is general in nature and your full situation would need to be understood before providing specific advice.

I would suggest getting in touch with a mortgage broker in your area to help guide you through the process. A good broker will take the time to understand your situation in detail and find you some solutions that are right for you.

I hope that helps and I am happy to have a chat on the phone if you need.

Cheers,
Frank Wong
True Wealth Finance
1300 18 40 15