Buying Income & expenses
Begin by calculating the total income for you and your co-purchaser (if applicable). This includes how much you are paid monthly, plus any other income such as rent or investment income. Then list all your monthly expenses. Remember to include expenses such as car insurance and registration. Don’t forget other expenses such as land rates, water rates and electricity. Finally, include credit cards, personal loans and other monthly repayments to financial institutions. To calculate your monthly amount, If paid annually divide by 12. If paid quarterly, divide by four.
After calculating your total income and expenses, you may decide to make a few lifestyle changes so you can borrow more, such as bringing your own lunch to work, or cutting down on take-away coffees. But don’t be too brutal in slashing expenses, as it must be realistic and maintainable.
The next step is to subtract your expenses from your income, and this will show you an estimate of what income you have available to put towards repaying a mortgage.
