June 09, 2018 by John Costa
Buying your first home
Buying a home is one of the most significant and rewarding financial decisions a person can make. If you are ready to take your first steps towards property ownership, congratulations!
The key to getting into the market is to be well informed about your financial circumstances and to get the right support from a qualified mortgage broker who can guide you every step of the way.
You might be asking yourself, what exactly does a mortgage broker do?
Put simply, a Mortgage Choice broker can liaise with a number of lenders on your behalf to compare and organise your home loan, saving you a considerable amount of time by doing all the leg work.
Your local broker will take the time to get to know you and assess your situation by analysing your financial habits, income, previous and current debt. This will allow them to determine your borrowing power and capacity to service a loan.
But why not go straight to the bank?
Unlike a broker, banks will only be able to offer you their own home loan products, which will limit your options. It’s also worth considering that each time you approach a lender to apply for a loan and are turned down, it will show on your credit history file. Your local broker can assess your full financial situation and help you understand your borrowing power without impacting on your credit history.
How do I get onto the property ladder?
The biggest hurdle for first home buyers is saving a sufficient deposit for a home.
According to Mortgage Choice’s Evolving Great Australian Dream white paper, only 23.2% of first home buyers purchased alone, compared to 76.2% who said they bought with a family member, partner or friend.
Seek financial assistance
The reality is that saving for a home deposit is a major challenge for first home buyers and this has been the result of strong price growth over the last few years.
If you don’t have the desirable 20% deposit to purchase your preferred property, speak with your Mortgage Choice broker about how you can possibly buy a property sooner by receiving financial assistance.
- Financial gift - This can be in the form of a monetary gift from your parents to boost your deposit amount.
- Guarantor - You may want to think about having a parent or family member guarantee your loan.
- Lenders’ Mortgage Insurance (LMI) - Alternatively, you could pay for LMI which provides the benefit of helping a buyer purchase a home with a smaller deposit.
As property prices continue to relax and official interest rates remain low, there has never been a better time for first home buyers to purchase.
Let us guide you through the home buying process
If you’re a prospective first home buyer, speak with your Mortgage Choice broker about discussing how we can help guide you through the process of purchasing a property, from getting the best rate as part of the home loan application, through to settlement.
