Buying your first home is probably the biggest purchase you are ever likely to make so it pays to do some research first. Not only is it important to find the right property, it is just as important to find the right home loan.
The most important consideration is working out how much you can afford to spend on your new home. This will depend on how much deposit you have and how much you can afford to borrow. You will also need to put aside additional funds to cover stamp duty, application fees and conveyancing costs.
Arranging your home loan in advance will let you know what property prices you can afford. It will also put you in a much better position to negotiate on a property price. We can arrange a pre-approval letter so that you can let the agents know that you are a serious buyer.
Most lenders require a deposit of around 20%. If you don't have
this deposit then most lenders will still be able assist but the
loan will be subject to Mortgage Insurance. Mortgage Insurance
protects the lender if you default on your loan and the property
has to be sold at a loss. The upfront premium is calculated on
a sliding scale depending on the amount of deposit you have. The
upfront premium needs to be paid by you, however, some lenders
are willing to add the premium to the amount you borrow.
As a first home buyer you may qualify for government First Home Owners Grant. The grant is a once off payment of $7,000 to assist first home buyers and is non taxable.
Click here to see if you might qualify.
Custom Finance are experts at matching the right home to suit their clients individual needs. Contact us today to find out how much you might be able to borrow.
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