Is it time to take the leap and buy a home of your very own? Did you know we offer a free service as a part of obtaining your loan to research the market you are looking in. This information can be very valuable when looking to make your offer.
We often hear from our first homeowner clients that some of the challenges they face is getting approved for a mortgage and staying within budget (let alone finding the perfect property!).
With hundreds of mortgage products in the market place it’s not easy to pick the right loan. Here’s some of our tips to get you started on your first home journey:
1) Don’t judge a loan by its interest rate
With everything new it’s important to educate yourself in what will suit your circumstances, especially in loan repayments and features.
Many first timers are attracted with the low interest rates that are currently on offer, but it’s important to look at other factors too such as high fee structures that typically come with low interest loans. If you’re after a lot of features, you usually pay for these through higher interest rates.
Some features that may appeal to a first home buyer is a no-deposit home loan, family guarantees or 40-year home loan options.
2) Know your limits
With your first loan, it’s important to get it right the first time around. So it’s important to be honest about what you can afford. It's easy to convince yourself that you'll only have to struggle for a couple of years but what if something was to happen in the meantime?
You only get once chance with a first loan and you will not have the benefit of the First Home Owner Grant or other incentives the second time around.
Ensure you plan a workable budget and stick to it which will give you a good idea of the home loan you can afford.
3) Know what you’re entitled to
Speaking of First Home Owners Grants, ensure you know what you are eligible to receive. Different state governments offer different incentives to first home buyers that change frequently. Make sure you know what is available when buying your first home and apply early in the process. The best time to apply is when you apply for your home loan.
4) Family assistance
We see parents assist their family with a family guarantee for their first home buyer children. A family guarantee loan works by using equity in the parent’s property to help their child secure a new loan. This means the new loan is secured by the child’s new property, as well as existing equity in the parent’s home. It can be a great option where no or a small deposit is saved.
5) Knowledge is power
The better informed you are, the more likely you will be to choose a home loan that genuinely meets your needs. Therefore it’s important that you do your own research and talk to relevant advisors.
At Focus Wealth we aim to make things easier for you. We’ve assisted hundreds of clients purchase their first home and we’d love to help you too.
We can guide you through the process, answer all of your questions and ensure you get the right home loan with the right interest rate so you’re not paying more than you need to.
Contact one of our experts today on 08 6162 6575