Buying Your First Home
Mortgage Broker For First Time Home Buyers
Purchasing your first home can be very exciting but also comes with a lot of stress. Our experienced mortgage brokers will guide you through the entire process, present your different options and help you make the right decisions.
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Common Mistakes When Applying For A Home Loan
Applying for you first home loan can be very overwhelming and there are more things to consider than you might think. We find that people tend to make 3 common mistakes when buying their first home.
The first is that they’ll often apply for the lowest interest rate they find. This could harm you down the track because if that loan doesn’t have the features you require, it could end up costing you a lot of money.
Secondly, we see people look for property before working out what they can afford. We find the best way to approach purchasing a property is work out what can you afford each month for a mortgage prior to looking at property.
Thirdly, we see people assume that their bank will reward them for their loyalty if they have been banking with them for several years. This is not always the case. Banks will reward you with a better interest rate based on the amount that you’re borrowing and the deposit you have.
To avoid mistakes, our mortgage brokers can support you along the way and help you find the right loan for individual situation.
First Time Home Buyer Loan
Find Out What Property You Can Afford
What steps do you need to take to try and work out exactly what property you can purchase?
As human beings, we often see something we like, such as a property we might want to purchase
and we immediately we try and make the numbers work. A different approach (and probably a more
sensible one) is to work out the numbers before even looking at a property. How do you do this?
Start by completing a budget. Work out where your money is going and how much you have to
allocate towards a mortgage repayment each month. Once you know that figure ie. how much you
have to allocate to a mortgage repayment, you can easily work out what kind of property you might
be able to afford.
For example, if you have $2,600 to go towards a mortgage each month, that would equate to a loan
of about $545,000 with an interest rate of 4% per annum over 30 years. Finally, make sure the figure
you’ve come up with is realistic. Then you add whatever deposit or savings you have to that loan
amount you can afford to repay to establish what property price range you can look at purchasing.
So, if we worked out that we can afford a loan of $545,000 and you have savings of $100,000 for a
deposit, you’re potential total purchase price would be $645,000 allowing you to look at properties
in that price range.
