Home loan deposit
Have you saved for the deposit? Property is a big purchase and requires typically a minimum of 5% deposit. You will also require funds to pay additional expenses such as solicitor fees, settlement related costs and loan establishment fees. Working through a mortgage broker who is independent in their mortgage advice is a good way to ensure you have captured all the costs upfront to know exactly where you stand financially for your dream home.
What can you afford?
Calculate your personal finances and aim for a mortgage where the repayment sits on maximum 25-30% of the gross monthly income. A mortgage broker can assist you calculating the full cost of borrowing and having the right balance between fixed income and monthly payments. Another good way to get started is to use our mortgage repayment calculators. Especially Borrowing Power gives you a good view as to how big you mortgage should be considering the level of income and recurring expenses.
Understanding the market
Research is vital when you’re planning to buy a property. Get familiar with the market you are buying into and pay attention to sale prices rather than the asking price, because these can be quite different. In addition, ask your real estate agent or advisor for an update on the current state of the market. Are there more properties currently on the market than buyers, or are buyers competing for properties? All of these affect the further development of the median house price within the area you are looking at.
When you apply for a home loan, your mortgage provider will look at your credit credit history to determine your eligibility or any risks associated with lending you money. Your credit history will show previous loans you have applied for, whether you’ve paid these loans out, your current debt, the number of bank accounts you have open, and so on.
If you haven’t already done so, check your file before you apply for a loan. There are plenty of free services to check your won credit score, such as https://www.getcreditscore.com.au/. Make sure the report is accurate and contains no surprises or mistakes.
Buying a house is a large financial commitment but also extremely rewarding. As you are entering the housing market it is always advisable to use a professional mortgage broker you are looking to borrow the right amount of money and ultimately get the best loan available in the market as the rates and offers change all the time.
Mortgage Basics is an ASIC authorised credit representative and mortgage broker assisting first home buyers and investors purchasing a property and securing finance from one of Australian Major Lenders. A job of a mortgage broker is to assist customers on choosing the right lender for the right property, giving free advice and assistance on entering the real estate market and help on fulfilling the eligibility requirement by assisting dealing with banks and regulatory authorities. Mortgage broker is funded by the lenders therefore customers do not need to pay for the service.
Mortgage Basics has helped hundreds of first home buyers and investors secure loans for their properties. In addition to friendly service in English, we have senior mortgage consultants available who also speak Chinese.