Key takeaway
A bank approval ceiling is not the same as a comfortable personal budget. Keep an emergency reserve after paying upfront costs.
Set a personal affordability limit
Start from stable take-home income and existing debt, then choose a monthly housing amount that leaves room for savings and irregular expenses.
Build the upfront cash budget
Add the down payment, stamp duty, legal or valuation costs, moving expenses and an initial repair allowance instead of using the down payment alone.
Test the monthly commitment
Compare the mortgage instalment with maintenance, insurance and other recurring property costs. Test a higher rate before committing.
