Buying a new home in or around Redland City
Planning to purchase
Planning is the key to a smooth purchasing process - here’s what you need to know.
Find out early on how much you can borrow: what would be the most that a bank would loan you? Compare that to what you can comfortably afford. If you can afford $500 a week, then your home loan repayments must fit within that.
You can start by creating a monthly budget and see where you spend your money. Factor in what you’ll be saving for your deposit and other purchasing expenses such as stamp duty, conveyancing, building and pest reports, and bank fees.
Your deposit options
Many banks will need to see genuine savings - money that you save yourself over time. Think about how much you want to save and how much you need to put away each week in order to get there.
A cash gift from family can be considered if you’re a first home buyer and you have a good rental history. However, it’s in your favour to have savings; it not only puts you in a savings routine, every bit helps when your financial position is being assessed by the banks.
Providing full details of your employment is part of every loan application process. Consider things such as job security. Are you just starting a new job? This could impact your application, particularly if you’ve made a career change and are working in a different field to your previous roles.
If you’re self employed, there’s usually a bit more work that has to go into preparing to purchase. Most lenders will require self employed people to supply financials. Because there are standard financial documents self employed people won’t be able to supply, banks have what is know as a ‘low-doc’ loan. These are generally more scrutinised when being assessed by a bank, so there could be more work involved in preparing your application.
The most important thing to remember is that you don’t have to do it all alone. Our team of mortgage brokers have gone through the purchasing process many times before and have the experience and skill to guide you through.