KNOWLEDGE is the key to today’s first-home buyers feeling comfortable
with entering the property market.
First-home buyers make up about 18 per cent of the mortgage market
and a recent independent survey by Mortgage Choice showed 21 per
cent of people planning to buy their first home in the next five
years had no idea of the property purchase process.
What first-home buyers don’t realise is that applying for a mortgage
can be easier than they expect.
For anyone planning to buy property, right now is the best time to
start researching.
Tips for first-home buyers before making a selection:
* Do your research
Apart from visiting a reputable mortgage broker, start taking note
of property and mortgage-related information sources.
* Visit online property finance calculators
There are many Australian home-loan calculators on the internet. They
give an idea of how much your income, assets and liabilities
situation will allow you to borrow, as well as what the repayments
will be.
* Write up a budget
If you don’t already have a budget plan in place, create one.
* Think about concessions and other costs involved
You may know how much you can afford, but have you considered the
new car you’ll need in a year’s time or new/replacement furniture,
or that overseas trip?
When you commit your money to a mortgage, you commit your lifestyle,
too.
* Consider suitable loan types
A mortgage broker can be a great source of information about options.
* Determine your property picture
Once you have a better idea of the loan type, repayments and loan
amount, you can start looking at areas and houses you think you can
afford.
