are you a first-time home buyer?
things you need to know
Before you decide to purchase your first property there are a number of things to consider, including your current personal circumstances and financial status.
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Factor in other costs involved
Depending on the property, there can be a number of additional costs, so ask your mortgage broker what other payments you will face. This can include, but isn’t limited to, stamp duty, loan establishment fees, legal and conveyance services, utilities, property insurance, maintenance and lenders mortgage insurance.As a First Home Buyer you may also be eligible for stamp duty (also known as transfer duty) first home concession, we can provide you with guidance on your eligibility.
YOUR CREDIT REPORT
Your credit report is used by many lenders to assess your ability to repay credit. You can get a free copy of your credit report each year to make sure it is correct and check your score.There are four reporting agencies you can get a copy of your credit report from: equifax.com.au / checkyourcredit.com.au / experioan credit report / tasmanian collection service.
think about why you want
to buy a home
Do you want to live in it or will it be an investment property? Deciding this will help determine the kind of loan you apply for and home you buy, depending on your short and long-term plans. We can discuss your plans with you and show you the costs for each option.
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think about your future
Just because your current situation allows you to get a home loan, that doesn’t automatically guarantee that you will still be able to service it in five years’ time. Is there a possibility your role at work will change? Are you considering going back to study and reducing your working hours?
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research potential
properties and loans
Knowing the market is crucial, so do some research on the areas you are targeting, check out auction clearance rates and recent sales, as well as price trends in the area. Once you are aware of what you are looking for and the approximate price, the next step is saving a deposit.
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get professional help
With so many things to consider, getting professional help is highly recommended. There are many experts in the industry and it is in your best interest to use them for tasks such as property/building checks, pest checks and any other legal queries. Going it alone can prove costly. Avoid nasty surprises down the track by getting the right people to do the appropriate checks for you from the beginning.
your deposit
Of course, if you have a 20% deposit saved you will have access to a wider range of lenders and products and won't have the Lenders Mortgage Insurance (LMI) cost, however many lenders offer home loans and products if you have saved less than the usual 20 per cent deposit.It is still to your advantage to being able to show a record of good saving habits to aid in getting your loan approved and this can include your rental payments with some lenders. We can discuss with you what fits your situation and assist you with applying for pre-approval on the right type of loan, ask for our help to work out what you can afford in terms of repayments, your borrowing capcity and how much deposit you will need plus costs.
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