Buying your first home is one of the most exciting times in most people’s lives. Getting into the property market is a great step in your personal and financial life. To ensure that your first home purchase runs smoothly and provides a stepping-stone to financial and personal security here are some things to consider when planning your first home purchase.
- Save a deposit. The more you save, the more leverage you have for buying a home and the more creditworthy you will appear to the lender. While the Australian government has currently introduced the First Home Loan Deposit scheme that will allow first home buyers to purchase a home with as little as 5% deposit, the more equity you can establish in the home from the outset, the better off you will be.
- Understand what government concessions that you are eligible for. Besides the First Home Loan Deposit Scheme, you may be eligible for stamp duty rebates. If in doubt, talk to the team here at Australian Finance Hub to gain a full understanding of what concessions that you are entitled to.
- Reduce and/or eliminate your debts. The less debt commitments you have, the greater capacity you will have to service a mortgage.
- Understand the costs involved in a home purchase. There’s quite a few. Some to factor in are stamp duty, conveyancing fees, loan establishment and/or administration fees and the cost of moving. Again, this is an area that you may need assistance with and Australian Finance Hub can help you to accurately calculate the costs of purchasing and financing.
- Obtain pre approval of your loan – this will help you to act with greater certainty. This may even give you a slight bargaining edge when you are competing with other buyers in the property market.
- Research the market. Understand the demographics of the area you plan to buy in and what the price range is. Consider the accessibility to public transport, schools and shopping areas. These will always have an affect on the current price and its potential.
- Research the property that you intend to buy. Buying a property is a huge investment and you want to protect your interests. Therefore, it’s a great idea to use the services of property inspectors and pest inspectors prior to making any commitments.
- Use professional services to help you in your mortgage application. The mortgage market is volatile and highly competitive. It is almost impossible for the average person to find the most suitable loan for them. That’s where the professional team at Australian Finance Hun can help
If you are in the process of planning your first home purchase or are ready to take that big first step, give the team at Australian Finance Hub a call to discuss your situation.