Tips for first home buyers

Tips for first home buyers

Tips for first home buyers

August 16, 2019

Tips for first home buyers 

First home buyer? Check out our Q&As for some simple advice on helping to make the journey as smooth as possible. Once you’re ready, head to your nearest HomeWorld Village and discover your first dream home!

Q.  Are you eligible for a home loan?
A.  Sounds obvious but never assume anything when it comes to finance. To give yourself a realistic picture of how much you can buy, contact at least three lenders to see how much you are eligible for. Online home loan calculators are great – but when you are serious, you need to talk to a human being.

Q.  Do you have any debt?
A.  If so, make it a priority to reduce the amount of debt you have as quickly as you can. Your level of debt – personal loans, credit cards – will have an impact on how much you can borrow. Knock off debts with the highest interest rate first before applying for a home loan. The good news is, though, university or student loans have less impact than a credit card.

Q.  Which home loan type is best for you?
A.  You’ve no doubt already discovered the world of home loans is a complex (and highly competitive) one. It’s not just about the interest rates, you need to review all of the features, fees and flexibility across a number of home loans. Variable, fixed rate, interest only, investment, construction – there are a number of loan types each with their own variances. Do your research and don’t rush your decision.

Q.  How much can you save for a deposit?
A.  Of course, the more you can save, the better. A bigger deposit will allow you to borrow more. To save as much as possible as quickly as possible, set a goal and timeframe, stick to a budget, and make a list of where you can save money.

Q.  What other costs will you face?
A.  Surprise! Home buying isn’t just about the cost of the home, there’s stamp duty, solicitor’s fees, removalist costs, reports, etc. Remember, though, as a first home buyer, there are concessions you may be eligible for, like the first home buyer’s grant or stamp duty concessions. You could potentially save thousands of dollars. So, research what savings you could be eligible for and budget for hidden costs.

 

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