Buying your first home is an exciting time, but can also come with some stress around saving a deposit and finding the perfect property.
The bigger your deposit the less you have to borrow from the bank when buying your first home, which means less interest as well.
If you are buying your first home you are eligible for a $20,000 First Home Owners Grant!
The Queensland government is currently offering a platform for first homeowners to get into the game in the way of a $20,000 handout for brand new homes bought.
However time is fast running out if you are buying your first home, to take advantage of a $20,000 first homeowners grant, which is closing on June 30.
After June 30 the government will still be offering the First Home Owners Grant but it will be returned to it’s original $15,000.
What can you afford?
You may have to compromise and be realistic when it comes to buying your first property.
When buying your first home you may have to buy a smaller property or a property in a neighbouring area if your affordability is not where you want it to be, so be prepared for this just in case.
Check out a mortgage calculator to see what you can afford and how much deposit you will need.
Research before you buy!
- Educate yourself on the area you want to buy in!
- Check out realestate.com and see what median house prices are going for.
- Go to open homes and auctions to see what kind of interest is in the area. If there are a lot of buyers at an auction or open home this will indicate that there is a lot of demand in the area that could push the prices up.
What is an LVR?
An LVR or a Loan to Value Ratio, this is calculated by dividing the amount of your loan by the purchase price. Lenders will use this to decide how risky it will be to lend to you.
Try a mortgage broker
When buying your first home a mortgage broker can be very useful, they can show you many different options when it comes to banks and interest rates.
They can also explain steps that you may find confusing and need a little help feeling confident with.
They specialise in helping borrowers find the right deal for them.
They are a middleman and can submit the loan application on your behalf with the best chance of a positive outcome. They know the in’s and outs of presenting a comprehensive loan application.
What do they charge?
You won’t pay any direct cash to your mortgage broker as they are paid a commission by the lenders that they work for, to introduce new customers to the bank.
What if I am using my super to buy my first home?
No, not yet.
However the Committee for Economic Development in Australia (CEDA) has called for changes to be made to allow Australians to use their superannuation when buying their first home.
They are reasoning that allowing individuals to use super when buying your first home could prevent poverty in old age with our ever-increasing elderly population.
In conclusion when buying your first home there are many factors involved for you to consider and ensuring you get the best deal and take advantage of as many incentives as possible is a great start!