As expected, the Reserve Bank of Australia has kept interest rates at a record low 0.10%. The bank has said it has no intention of raising interest rates for the foreseeable future – making it the perfect time to purchase property.
Whether it’s your first or fifth property, buying a home can be a chaotic time – especially during the process of securing a home loan.
If you’re looking at buying, here are 8 tips that can lead you to your dream home.
- Check your eligibility. The first step is to check that you qualify for a mortgage.
- Find out what your credit rating is. Your finances need to be in place in order to secure a home loan – make sure your debts (loans, credit cards etc) are paid on time. Better yet, clear all your credit cards before you apply. You can check your credit rating online.
- Finalise your deposit. The more you’ve saved, the more you’ll be able to borrow. It’s best to aim for around 20% of the purchase price. Anything lower and it’s likely you’ll have to take out lenders mortgage insurance (an added expense.)
- Calculate the hidden costs. Make sure you factor in stamp duty, application fees, pest inspection reports and registration fees.
- First-time buyer? Find out if you’re eligible for a first home-owners grant or stamp duty concessions.
- Have everything in place first. Don’t risk falling in love with a place before you have all your ducks in a row – you could be heading for a heartbreak!
- Decide on the type of loan. The options are diverse and can be a tad confusing. It’s important to understand the difference between a variable, fixed-rate, interest-only and investment loan. Make sure you get the right home loan for your needs.
- Get expert help. A mortgage broker will help make the process much easier than if you did it yourself.
We’ve helped hundreds of people secure a mortgage and find their dream home. If you’re thinking of buying, give us a call and we can go through your options together.
