buying your first home

Before buying your first home - read these tips!

Save up for a deposit:

One of the most important things you can do to increase your chances in obtaining a bond at a good rate is to have a decent deposit to put down. The more money you put in at the beginning, the less you will owe and the more inclined a bank will be to take a risk on you.

Make sure you know how much you can afford:

The first thing to do before buying a home is to make sure it’s the right time to do so. Owning a home pays off financially if you will live in it for at least five years. Your home shouldn’t be treated as an investment.

Hopefully, it will appreciate over time, but you should buy it because you want a home to live in.

Only buy a house that you can afford today!

Try to keep your total house payment under 30 percent of your gross monthly income. When you spend much more than that on your house bond, you risk becoming “house poor”. You might live in a beautiful home but find it difficult to save or even cover other monthly expenses.

Apply for prequalification:

If you get prequalified for a bond, you’ll know what you can afford and the search for your ideal home will be a lot easier. You’ll also find out your credit rating and if you fall short of the banks’ requirements.

Shop around for a bond:

Don’t just accept the first offer that comes your way. Another bank might offer you a better deal. A reputable bond originator usually applies to multiple banks for your home, making sure that you get the best deal at no extra cost you.

Location location location:

Location is the most crucial consideration when buying property because it is the biggest determinant of a property’s potential to grow in value. Buy in an area that has or is close to good schools, major transport routes, shopping centres, business nodes and medical facilities. Find out about crime in the area. Location is key for the bank too. Should it need to repossess the property, it wants to be assured of being able to sell it, and a property in a sought-after area is more likely to sell.

If you are already on the property ladder but debt has meant you are in arrears on your home loan. Don’t delay and contact us today. We can protect your assets from repossession.