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First Home Buyers

Buying your first home can be extremely satisfying but also a stressful time.

As well as the excitement of getting into your own home there are a number of things that can cause a lot of stress. After all, for most people this will be the largest purchase that they have made.

Planning and sensible advice can make the process a lot easier.

What you need to know
The key questions you might have may include;

  • How much is the minimum deposit do I need?                                                
  • What will the repayments be?
  • Which is the best lender/bank?
  • Should I use a home loan broker?
  • What else do I need to know?


How much is the minimum deposit do I need?

Deposit requirements vary between lenders and are based on criteria that can change over time. Lenders will often require that at least some of the deposit (usually 5% of property value) must be a genuinely saved and can be demonstrated with a minimum of 3-months savings history in a bank account.

If you borrow more than 80% or more of your property’s value, you will be asked to pay lenders mortgage insurance (LMI). It involves paying a one-off premium when you take out a home loan so the bigger your deposit, the less you pay in LMI.


What will the repayment be?

It is important to know what your repayments will be so you can ensure that you will not be putting yourself under too much financial pressure when you buy your first home.

Do not forget the other expenses associated with owing your own home, such as council rates, house insurance, repairs and maintenance and body corporate fees.

It is also important that you plan for times when interest rates may increase, or if your income decreases e.g. you start a family.

Public Home Loan Broker can advise you on mortgage repayments and also show you how to pay off your mortgage faster.


Which is the best lender/bank?

Everyone wants to know which is the best bank or lender and which one offers the lowest interest rates. The answer will vary for each individual situation and your Home Loan Broker can advise you once they have a clear picture of your financial situation and requirements.

When comparing lenders, you need to consider a lot of things including which lenders consistently have competitive interest rates, lower account fees and offer you the most suited loan structure.


Should I use a home loan broker?

To ensure that you are provided the best advice, you should use a Home Loan Broker that has access to a range of banks and other lenders plus whom has the experience and knowledge to help you get the best mortgage and show you how to structure the mortgage so you can pay it off more quickly.

Good Home Loan Broker are also able to help you through the whole process of buying your first home.


What else do I need to know?

Buying your first home can be stressful and you should work with your Home Loan Broker to make sure you are able to make the process as easy as possible.

Apply for a home loan pre-approval – Public Home Loan Broker can arrange this for free.

Research the property to avoid surprises – RP Data, building reports and valuations can help.

Manage the risks – house insurance is a legal requirement with a mortgage, but Income or Mortgage Protection Cover is essential if you are reliant on your income to pay the mortgage.

Buying your first home is a big decision and you want to make sure you do it right.


Ask your Home Loan Broker if in doubt. Most Home Loan Broker have seen many people just like you and are used to dealing with the excitement and stress that often comes when buying your first home.



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