Finding the right property
Finding the right property is an essential key to securing the right home loan. There are a myriad of details that go into selecting a property, including: location, property type (unit, townhouse, freestanding house), and services (roads, public transport, schools, shops etc).
Organise a home loan pre-approval
Before beginning the search for your first home, it is worth securing a home loan pre-approval regardless of how much you are intending to borrow. A true unconditional home loan pre-approval will give you clear guidelines on your borrowing capacity, allowing you to negotiate or bid at auction with confidence. For more information, go to home loan pre-approval.
find the right home loan for your property
To find the home loan for the purchase of your first home that is in your best interest, talk to your local Loan Market mortgage broker by filling out the form below, or call us any time on 0508 722 205 (+64 9 377 7342).
Financial Considerations
Many of the decisions you make concerning which property to purchase will be personal, but there are some serious financial considerations you will need to take into account prior to committing to the purchase of your first home. Your local mortgage broker can help you understand how each one relates to your situation.
- Securing home loan pre-approval
- Sourcing your deposit
- Buying within your limits
- Understanding interest rates
- Fees, charges and associated costs
Buy within your limits
Much as we might want our first home to be perfect, the reality is that as a first home buyer, you will probably have to settle for something that is not quite your dream home and work you way up to being able to purchase the type of property you really want.
Being conservative with your first property purchase can pay big dividends down the track. Not only are your repayments easily manageable, but your will accrue equity much quicker, allowing you to upgrade or move into property investment much earlier and more easily than if you had purchased at the edge of your limits to start with.
Budget in an interest rate rise
When determining how much you should borrow, you need to take into account the possibility of interest rate changes to ensure you can continue to service your loan should rates rise. The general rule is to allow for increase of around two-three per cent.
The past few years have shown that a larger margin, as much as five per cent, may be the safest option, however most lenders work on around three per cent.
For more information on finding the right property
For more information on home finance or the home loan that is in your best interest, talk to your local mortgage broker or call us at any time on 0508 722 205 (+64 9 377 7342).
