August 14, 2020 by Rebecca Crommelin
Buying your first home is such an exciting time, but it can often be overwhelming and a bit daunting to take the first step. However, with the right advice and help, it doesn’t have to be!
The property market right now is so favourable for first time buyers, with up to $45,000 in government grants and the lowest interest rates ever - the market is yours for the taking!
But if you’ve never had a home loan before, figuring out the home loan market and process can be confusing.
So we’ve put together a few tips that can help you make the right moves when it comes to buying your first home.
The right advice
First up, we can’t stress enough how important it is to get the right advice. Make sure you speak to an experienced mortgage broker, or even a few, until you feel like you are in the right hands.
Unlike the banks who only have a small range of products to offer, a mortgage broker will research and compare hundreds of home loan options from over 20 different lenders to find you the right loan - saving you a lot of time and hassle. As Mortgage Choice brokers, we are paid the same commission regardless of which lender you choose so you can trust that our recommendations are purely in your best interests. So it’s a great idea to check with your broker first to see how they are paid and if this impacts what loan they recommend.
As well as researching your options for you, a broker also prepares and handles all the paperwork on your behalf, and liaises directly with the lender and other third parties involved. Then follows the progress of your application from start through to settlement - and keeps you updated every step of the way.
A mortgage broker can also assess your eligibility and help you apply for any government grants and concessions such as the First Home Owners Grant or HomeBuilder grant.
If you are feeling a bit overwhelmed or want to make sure you’re getting a good deal, I’d highly recommend speaking to a good mortgage broker. Our team at Mortgage Choice in Perth CBD have been in business for almost 20 years and are experienced in first home buyer loans - so book in a chat with our brokers if you want the right advice.
Secure home loan Pre-approval
While the market is heating up for first home buyers, it’s a really great idea to speak to your broker and secure home loan pre-approval. So that when you’re shopping for your dream first home, you know exactly what you can afford to spend. It will also help give you an edge over other buyers that don’t have finance in place as the vendor will have confidence that you have your finances in order. So pre-approval could help you to secure the dream property you have your eye on.
Understand your options - guarantors, grants, and more!
Once you’ve spoken to a broker, you should better understand the options you have available to you.
But if you’re still doing your research and think you may fall short with savings for your home deposit it’s good to suss out all your options. For example, perhaps your parents or family would kindly offer some assistance by going guarantor as added security or providing gifted funds. This will reduce the need for a larger deposit that you need to get a loan.
You may have already heard but there’s also up to $45,000 of government building grants on offer. So it’s a great idea to decide whether building your first home is something you want to consider to take advantage of the cash incentives. However, it’s worth noting that as of right now it doesn’t appear that any banks will consider these grants as a form of deposit but instead rather a cash bonus to help pay down the loan or fund your build.
As we mentioned, there’s also the $10,000 First Home Owners Grant in WA that you could be eligible for which your broker can talk you through and help you apply for.
We hope these tips have helped you better prepare for buying your first home! It is such an amazing milestone, so it really helps to get the right advice and get prepared so you get the right loan and property for you.
