Tips for First Home Buyers
With the housing affordability crisis biting across Australia, many first-home buyers are searching for alternative ways onto the property ladder.
Check your options
What many first home buyers don’t realise is that there is a lot more to a home loan than just the interest rate. From redraw facilities to additional repayments and everything in between, certain features are quite valuable depending on your situation, some people might like knowing what their repayment will be each month so a fixed rate could be the way they go, however if interest rates go down having a variable could save you money.
Start saving now
Buying your first home is a huge step and one of the biggest purchases you will make in your life you need to know what you’re getting in to. A big part of the process is savings for a deposit. If you save $500 a week it would still take you 5 years to afford a 20% deposit on an average-priced house in Sydney.
Think towards the future
Most first home buyers won’t stay in their first home forever. It is a good idea to future proof your investment by purchasing in an area where the price of the house is to go up. Are prices likely to increase or decrease? Is there a new public transport development going on? Does it have access to schools and shops? Thinking towards the future will increase your chances of living a comfortable retirement.
How much should I save for a deposit?
Putting down a larger deposit can have many benefits over both the short and long term. With a deposit of 20% you can access a wider variety of loan options and it also means you most likely won’t have to pay Lender’s Mortgage Insurance costs. However, with prices at record highs in Australian capital cities, saving for a large deposit could take much longer than you would like.
How much can you borrow?
Your income helps us work out how much you can borrow on your home loan and if you have a strong savings history - one of the requirements. You can use our borrowing power calculator to see how much you could borrow.
If you have any questions about buying your first home give us a call on 1300 36 2000 or visit your local branch.