First Home Buyer Mortgage Tips
Regular Saving History
All lenders want to be comfortable with your ability to repay the mortgage (and you will definitely want to know the repayments are affordable too). Our advice is to start saving what your mortgage repayments are likely to be less rent payable (if applicable), so when you move into your new home you know the mortgage payments fit into your budget. When working out the required savings we recommend adding a buffer into the interest rate so you are in the habit of paying more just in case interest rates rise in the future. We are happy to assist you in working this out if required.
The size of your deposit has a big effect on your loan options when buying your first home. As a minimum most lenders will require a deposit to be saved an the amount will vary depending on the lender. Our advice is to have as much deposit as possible, as this will generally give you more loan options and the chance to negotiate a cheaper loan product.
If you are considering purchasing your first home soon, it is a good idea not to change jobs too often, your stability with your employer or remaining in the same employment industry can affect which lender are available to you.
Protecting your biggest asset
Have a think about what your biggest asset is??
Your biggest asset is your ability to earn an income. Without an income you don’t have the earnings to fund your living expenses and mortgage repayments. Look into your options regarding Income Protection Insurance (The insurance premiums are generally tax deductible)
Prepare a budget
Take the time to work out a household budget, remember to include your minimum savings amount as an expenses and your income protection insurance premium. I’m sure you will identify areas in your spending habits to save you even more; I have included a link to a great budgeting tool to get you started. https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/budget-planner
Speak to your mortgage broker
Everybody’s circumstance is different and we are available to meet with you to discuss what options are available to you and what the lenders are looking for when applying for a loan. We can also advise whether you are ready to buy now or what you need to do to purchase your first home in the future.