New Year, New Home: Tips for First-Time Homebuyers - Nfinity Financials

New Year, New Home: Tips for First-Time Homebuyers

By: Nfinity Financials0 comments

Happy New Year, Mate! We all had a blast last night; we wish you joy and laughter this year. What is your New Year’s Resolution this year? If it’s buying a house, you are at the right place. Ready to take the first step on your real estate journey in Australia? While dealing with real estate may seem like a vast landscape, we’re here to simplify it for you. This blog has resources and tips to kickstart your journey toward buying your home in Australia!

Before you begin your search for your ideal home, there are a few steps you must follow when purchasing a house.

Set a Budget! 

The variation of property prices depends on the location and the amenities nearby. It is suggested to be familiar with the real estate market a bit and the potential price range of the desired property, before going out in the market to buy.

Consider your house deposit and any existing debts when deciding on your budget. Make sure to consider all costs beyond the property price, like legal fees, property reports, strata fees, and mortgage interest rates. What’s next? The next step is to understand your borrowing power.

What is Borrowing Power?

Now, to understand how much you can borrow from the bank, talk to a mortgage broker. They’ll guide you through the process and make sure everything goes smoothly when you’re buying your home. This helps you know exactly how much you can borrow to make your property purchase happen.

Want to seek guidance from professionals? That’s our cup of tea, contact us today, and while you sip the tea, we’ll be over with all your problems. Let’s make your real estate dream, a reality!

Don’t know where to seek guidance from? Nfinity Financials is your answer! Connect with Nfinity Financials Mortgage Brokers for valuable information on market dynamics and stay well-informed. Let’s chat over tea and make your real estate dream, a reality!

When determining borrowing power for most home loans, several factors come into play. Your annual income, job title, existing debts, current home deposit, and other financial details contribute to the lending criteria.

In certain instances, securing pre-approval for your home loan can be assured as you step into negotiations. Our suggestion? Go for pre-approval on your home loan – it makes your journey to a new property smoother and helps you when you’re negotiating. It’s like having a green light to move ahead with confidence! How does the government aid in the process?

Available Schemes and Grants

In Australia, numerous government grants and schemes aim to assist first-time homebuyers in making their debut in the property market. These grants can potentially lower your expenses, easing the path to homeownership.

With the help of government grants, first-home buyers can save a good amount of money, making the journey a lot easier and helping to get on the property ladder. Here are some of the government schemes.

1.      First Home Owner Grant

If you’re an Australian resident over 18 and haven’t owned a property before, you could be eligible for the First Home Owner Grant. It works for both new and existing homes.

This grant gives qualifying first-time homebuyers up to $10,000 to help with buying or building their first home. Just keep in mind, that you’ll need to live in your new home for at least 6 months within the first year after buying it.

2.      First Home Buyers Assistance Scheme

This scheme is open to first-home buyers, whether you’re purchasing a new home, an existing one, or even vacant land with plans to build. The grant is designed to reduce additional costs beyond the property’s purchase price.

How to get a home loan?

Before progressing to a property sale contract, it’s crucial to secure a home loan covering the property price.

Loan to Value Ration (LVR)

The LVR (loan-to-value ratio) of your loan shows how much you’re borrowing compared to the property’s value. A higher deposit means a lower LVR.

Lenders Mortgage Insurance (LMI)

If your loan is seen as a bit risky by your lender, you might need to pay LMI. The cost depends on your deposit, how much you’re borrowing, and where the property is. LMI is like a safety net for your lender in case you can’t repay your loan as planned.

Savings

When you’re getting ready to buy a house, saving money is super important! The more you save, the bigger your deposit, and that means you won’t have to go for risky loans. If you’re a first-time homebuyer, saving a lot gives you more choices in finding a home you like and increases your chances of getting a good loan with a lower interest rate.

Finding & Comparing 

Not all home loans are the same, so it’s a good idea to talk to an expert. Before you decide on a lender, have a chat with your mortgage broker. They can guide you through different options and help you find the loan that fits your money situation best.

Some lenders might let you borrow more money, even if you don’t have a big deposit or a perfect credit history. But remember, these lenders might also charge a higher interest rate. Think about both the upfront and ongoing costs to make the best choice.

Finding & Purchasing 

When you’re sure you can get the home loan you need, it’s go-time for your property hunt! First-time homebuyers get grants to help out, whether they’re going for a new place or a well-established one. Here are some of the things you should keep in mind while looking for a house.

Where to look?

Fantastic properties hit the market regularly. To discover your dream home, keep an eye on local real estate listings. Engage with real estate agents in your desired area, keep an eye out for sale signs on listed homes, and regularly browse online listings within your budget to see what’s new.

Inspection

Before you decide to buy a house, go check it out during an inspection. It’s your chance to look around and figure out if it’s the right one for you.

Don’t rush into buying the first house you see. Go to different inspections, compare them, and get a good idea of what they’re worth. This way, you make sure you’re getting the best deal for your money.

Pro Tip!

Before you go ahead and buy your first home, make sure you can comfortably handle the minimum mortgage repayments. And don’t forget to set aside some funds for potential maintenance or repairs to take care of your new property.

When you’re buying your first home, there are some costs you need to know about. Don’t just think about the price of the house—there’s more to it. Save up enough money for extra fees like stamp duty, land tax, strata fees, and council rates. You might also have to pay for checks before buying, like building or pest inspections.

Begin your Australian homeownership journey with Nfinity Financials. Set a budget, explore grants, and understand your borrowing power. Our mortgage experts simplify the process, ensuring a smooth path to your dream home. Save money, compare loans, and find hidden costs. Let’s make your real estate dream a reality in the New Year!

For any query, Book your consultation now or give us a call at 1300 GETLOAN. Stay informed with Nfinity Financials, so you can make your financial decisions with confidence.

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