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How to understand your budget

The key to understanding the budget for your new home is a clear grasp of what is affordable for you. With an average mortgage in Victoria setting you back over $400,000, it is, undoubtedly, one of the single largest purchases of your life. Understanding your budget requires more than the numbers on your pre-approval. For the journey to becoming a homeowner to be as stress-free as possible we recommend you take a holistic view of all your expenses to find that sweet spot that is the correlation of your dream home and financial security.


Why it’s smart to follow the 28/36% rule

This rule is a tried and tested method to establish a comfortable baseline of what you can afford within your means. In order to not run into financial strife by maxing out your income to buy a home, it’s important to set aside funds for savings, emergencies and of course retirement.

Most financial advisors are in agreement that no more than 28% of your gross monthly income should be spent on your mortgage and no more than 36% should be spent on total debts, including car loans, credit cards, etc. To calculate how much 28% of your income is, multiply 28 by your income. If your monthly income is $6,000 then you would calculate as follows

$6,000 x 28 = $168,000 now divide this by 100

$168,000 ÷ 100 = $1,680


Beyond the Mortgage

Your mortgage is a single factor in the home-owning equation. To get a clear overview of all factors, it is worthwhile figuring out all of your associated expenses. In the initial outlay of your home purchase there is mortgage insurance, loan-application fees, and stamp duty – to name just a few, this page gives a comprehensive overview of some of the hidden costs you may find on the journey to owning your new home.

Thankfully, some great savings can be made when you purchase a house and land package – besides the price tag savings, house and land packages can come with tax benefits. Before your house is built, stamp duty will only be paid on the land component of the package. To further sweeten the deal, you may be eligible for stamp duty concessions as you are building a new house.


Can you handle it

Buying your dream home often comes with a long wish list of must-haves. While that big house on the hill may look ideal, sometimes, the reality of owning a large house, a big plot of land or a fixer-upper can come with a great deal of added expense and work, not to mention on-going maintenance.

Monument offers complete luxury townhomes and house and land packages by reputable builders – to take the stress out of not only choosing a dream home but maintaining it. If the thought of having the time to enjoy life, and not spending countless hours maintaining a home is your preference, Monument has plenty of options for you.


Gaining a clear understanding of your budget requires an honest appraisal of your finances now, and into the future. With a variety of packages to suit all budgets, Monument is here to provide understanding and knowledge to guide you through this journey.