Buying your home is a very exciting time, it's your opportunity to escape the rent cycle and invest into your future. Before searching for your new home, there's some important things you should consider first...
1. Your borrowing capacity
Before you start considering your potential new home options, it's important to know your borrowing capacity. This is the amount that banks and lenders are prepared to lend based on your current situation.
You can do this by speaking to your bank directly. Alternatively, a mortgage broker can access multiple lenders on your behalf. If one bank restricts you to limited options, you will have access to other lenders without having to make multiple inquiries.
With your borrowing capacity calculated, you'll be able to seek out properties within your budget. Our team can provide you with a free assessment to determine how much you can potentially borrow.
2. Your budget plan
Everyone should have an effective budget plan, especially when buying a home! Here are some reasons why...
- A budget plan will give you more control of your money and spending habits.
- You can feel more focused on your savings goal.
- By sticking to a budget, you can prevent overspending and reduce debt faster.
- You'll feel more confident making big financial decisions such as buying a home or investing.
You can download a copy of our free budget planner which is simple to use and available in both PDF and Excel formats.
3. Repayment amounts
When exploring new homes, you can get a general idea of repayment amounts that you can expect to repay based on the home loan amount.
Moneysmart.gov.au provides a free online mortgage calculator that can help you determine approximate repayment amounts based on any interest rate.
4. Government support
The Government has provided a range of grants and schemes designed to help Australians to enter the property market. As a home buyer, it's important to check which grants may apply to you.
- Home Guarantee Scheme - With this scheme, the government will guarantee up to 15% of your home loan. This allows first home buyers to avoid lenders mortgage insurance and achieve home ownership with 5% deposit.
Learn more
- Family Home Guarantee - This scheme is helping single parents (or legal guardians) with dependents to enter the property market with 2% deposit. It is available to both first home and previous home owners.
Learn more
- First Home Owners Grant - This is a State Government grant for eligible first home buyers when buying or building a brand new home. Many lenders will consider this grant towards your deposit.
Learn more
5. Your needs vs wants
Smart home buyers will put themselves in the best position for success. Take some time to think about what's most important to you... Will it be the price or repayments? The location? The size of the house / land? Be willing to compromise and explore ways that you may able to adapt to a property.
6. Your mentors
Buying a home is a big step and it's not always an opportunity that comes along often in our lives. Talk to family members and friends who own a home and ask them questions. Learn about their personal experience and the benefits of home ownership. Reach out to industry professionals to get the support and guidance that you need.
We can help!
Our simple and effective strategy is helping Aussies to achieve home ownership sooner with less savings. Grab your Info Pack or Get pre-qualified online today to start your journey!
