1. Know what you can afford
There is no point in overextending yourself. Make sure that your loan repayment is within your means. Knowing what you are currently paying in rent and saving can help.
2. How much can you contribute?
Obviously, the more that you can contribute, the better. But how much do you need?
3. Will you qualify for any first home buyer benefits?
Both the State and Federal Governments offer various incentives to first home buyers. So will you qualify for a Government benefit?
4. Will you be receiving any assistance from your parents or other family members?
These days, it is very common for parents to offer assistance to their siblings to purchase their first home. Whilst this could be a gift or a loan, parents can also offer a guarantee
5. Will I need Lenders Mortgage Insurance (LMI)
If your overall contribution is less than 20% of the value of the property, chances are that you will need LMI.
6. What costs are involved?
Apart from your initial deposit, you may also need to cover stamp duty and your solicitor/conveyancer fees. As a guide, this is normally 4.5% of the purchase price of the property.
7. Do you prefer a unit, townhouse, or house?
Whilst we would all like to live in a big house, being your first home means that you will need to live within your means. It is not uncommon for first home buyers to start with a unit before progressing into something larger as the years pass.
8. What area would you like to live in?
Again, you need to consider living within your means. Sometimes living in the area that you grew up in or being close to family and friends may not be possible.
9. Don’t procrastinate
We see this all the time. The facts are that property values increase at a faster value than what you can save over time. Delaying your decision can mean that you end up spending more for less.
10. Place yourself in a position to buy a property as soon as you find it
Get ahead of everyone else and arrange a pre-approval
11. Engage the services of an experienced mortgage broker
Dealing with a mortgage broker that has over 25 years of experience helping first home buyers is critical. Apart from selecting the property for you, we can guide you through the entire process and offer the helping help through some of the confusion.