First Home Buyer Guidebook - Your First Home Loan Application

Thinking you want to enter the property market?

This is an incredibly exciting milestone. A sure sign of entering adulthood! Well done.

However, going through your first home loan application can be a daunting experience.

What will the lender want to know? What documents do you need to provide? How do you know whether your finances are in good shape?

And most of all, when do you know you’re ready, for this huge commitment?

At CWCU, we believe this process doesn’t have to be stressful.

We have put together a helpful First Home Buyer Guidebook, so you can get all the information you need in one place.

So make a cuppa (or pour a wine, depending on what time it is) and have a read!

Saving for a deposit

One of the first steps is to determine your borrowing power. This will help you understand how much you can borrow.

This is calculated from your income and liabilities information, as well as your living expenses.

Then you will need to work out how much you need to save for a deposit.

While '10 percent' is often the magic figure thrown around for home loan deposits, most lenders are in fact prepared to loan you up to 95%. But many people choose to contribute more, to lower loan repayments.

So while setting your goal at 10 percent is an excellent goal - there is also the option of waiting a bit longer and aiming for 20 percent. There are major benefits to this, with the big one being - no need to pay Lenders Mortgage Insurance (LMI) - which saves you thousands of dollars.

LMI is just one of the additional costs you’ll need to take into account. There’s also stamp duty, Pest and Building Inspection and Conveyancing.

Make sure you download our Guidebook for a full list of additional costs to expect. It also includes a Home Loan Calculator and a Net Worth Calculator.

Pre Approval Process

Formally seeking pre approval on your home loan can be a daunting task.

There are a lot of ducks to get in a row and many documents to provide.

Our Guidebook includes a Pre Approval Checklist, to make this process easier for you.

However - it also helps to work with a lender who will take the time to sit down and discuss it with you.

Fixed Rate Home Loan - or Variable?

The key question to ask when comparing fixed rate home loans and variable home loans is - what is best for your situation?

If you need the security of a fixed rate - and the comfort that comes with knowing your repayments won’t change for that locked in period of time - then fixing your rate is the way to go.

But if you believe your finances can tolerate a potential rate increase and you would prefer some flexibility with your repayments - variable may be better for you.

It’s worth having the discussion - whether it be with your lender or a broker.

Your Guide to your First Home Loan Application

We have created the First Home Buyer Guidebook to ensure you enter into this commitment with all the knowledge you need.

Simply enter your email address below and it will arrive in your inbox! Along with some helpful information about CWCU.

We are a Customer Owned Banking Association - and proud of it! We also have video conferencing capabilities - so in this wonderful digital age, we can work with anyone, anywhere.

Get in touch with us, if you have any further questions!