First Home Buyer Tips

First Home Buyer Tips

Buying a property can be quite daunting and is often the single largest investment a person or family will make. Without having the right guidance, it can be quite emotionally taxing.

Here are some of the tips that can get you ‘buying ready’

Speak to a mortgage broker and check if you are eligible for a home loan

Unless you have recently received a large inheritance or won the lotto, chances are you will need to get a loan to purchase your first home. So before getting trigger happy with house hunting, it is important to get an idea of how much you can afford to borrow.

Work out how much deposit you have

Deposits can be in the form of your own private savings and/ or gift from parents. While it is possible for you to purchase a property with 5 -10% deposit, you may have to pay lenders mortgage insurance for the higher loan amount. To avoid this, you will need enough savings for;

• 20% deposit for your purchase
• Government Fee (Stamp Duty and Registration)
• Legal and Conveyancing Solicitor Fees
• Removalist Cost
• Lenders Fees
• Building and Pest inspection

Create a future home budget

One of the most common mistakes for first-time buyers is not accounting for future ongoing expenses such as strata fees, council rates, etc.

Maintenance can be expensive when you own a home, so make sure you build a savings buffer into your budget to account for unexpected costs.

One strategy is to choose a loan that allows extra repayments to save on interest while building a buffer for you to redraw from in the future when you need it.

Look into government Incentives

As a first-time buyer, you may be entitled to government grants, concession and/or financial assistance.

• Stamp duty Exemption / Concession
• First Homeowners Grant
• First Home Super Saver Scheme

Stamp duty and first homeowner grant can add thousands of dollars to your overall savings for your purchase.

Eligibility for government incentives differs between state and territories. Check with your State Revenue for more details.

Find a good conveyancer or solicitor

A professional conveyancer or solicitor will help with the settlement and title transfer process. This includes reviewing the contract for sale to protect the client’s best interest and to ensure that the purchaser meets all their legal obligations.

If you need more information or help with an application, you can contact one of our experienced mortgage brokers by completing the ‘Qualify Me’ form.