Home loan tips to reach your 'great Australian dream'
We all know the song - ‘Give me a home among the gum trees, with lots of plum trees…’ The ‘great Australian dream’ of owning a home has been part of our country’s identity for centuries. Of course, back then it was a much more affordable feat!
Your dreams are important to us - we want to make them come true. So here are some tips you can use to achieve your goals and buy your first house!
Make records of your spending
Sit down with your bank statements and start the month with a certain amount of cash in your wallet and your account. Make note of each item you spend money on, each payment made. At the end of the month, completely go through your finances and analyse your spending. Where is your money going? What can you cut back on?
It’s also a good idea to list all major repayments that come up regularly (health insurance, car insurance, electricity bills) and make note of when they are due. Add up how much you need to put aside for these each year.
Based on all this information, set yourself a reasonable budget, that includes a certain amount going into savings each month.
Set a goal
Once you have decided on an amount you can comfortably live off, based on your income and spendings, decide on a reasonable goal for your deposit. It’s good to remember, the more you put down for the deposit, the less interest you have to pay. A 20% deposit means no lenders mortgage insurance!
As a first home buyer you’re currently exempt from stamp duty (yay!) but you still need to put a little bit aside for things like solicitors fees and pest and building inspections.
Something else that is very important - the deposit is not the only thing to consider when deciding your home goals. You also need to think about repayments - how much can you afford to pay each fortnight? What kind of lifestyle do you want? Use your budget to decide on the maximum amount you can afford to pay, so you don’t find yourself overstretched later on.
Put a good dent in any credit card debt and personal loans
Debt can sometimes affect how much someone is willing to lend you. It will be a big load off your chest if you can rid yourself of this before taking on a mortgage. Definitely not essential, if you’re debt is under control, but a big help in the long run!
Find an institution you can trust
Taking out your first home loan is a daunting step. But it’s also really exciting! If you find an institution you can trust, who wants to give you the best deal possible, the rest will come more easily. Do your research, make sure you go in and chat to the staff to get an idea of what they’re about. This process doesn’t have to feel isolating. If you find the right lending specialist, they will walk you through each step and be there to assist you.
Mobile Lending Specialist
We have a Mobile Lending Specialist who can come right to your doorstep, at a time that suits you.