POINTS TO CONSIDER WHEN BUYING YOUR FIRST HOME

Work Out a Budget

Work out a budget, this is a great way to see where your money is going and will enable you to cut back on any unnecessary spending helping you to save.

What is your borrowing capacity?

Finding out exactly how much you can borrow, (your borrowing power) a borrowing calculator is the best way to start. Visit your lender of choice so that they could help you even further by looking at your income, financial situation, credit history and any savings you may have. Get a copy of your credit history by calling Baycorp Advantage on (02) 9464 6000 or visit www.mycreditfile.com.au.

Do your Homework

Have a good idea of what type of property you’re after – house, townhouse or unit? Location, features, size.

Choosing the Right Home Loan

Its very important that all factors are considered when choosing the most suitable home loan option. The most commonly used home loan for first home buyers are home loan with variable interest rate as this is option has repayment periods up to 30 years.

Entitlements

Been a first home buyer you a eligible for the First Home Owners Grant and also Stamp Duty Concessions. To be eligible for the federal government’s First Home Owners Grant scheme and stamp duty concessions you must be an Australian citizen or permanent resident and you (and your spouse / partner) must have not previously owned a home in Australia. 

Deposit

If you're a first home buyer, you will need to provide some amount of deposit towards the purchase of your first home. Although there are many lenders out there that do offer home loans without a deposit.

As a guide:

• 95% loan - the deposit amount you would need ranges from ~$5000 for a $200,000 property to ~$15,000 for a $500,000 property
• 100% loan - the deposit amount you would need ranges from ~$0 for a $220,000 property to ~$7,000 - $8,000 for a $500,000 property

Transfer of Title

Transfer of Title, this is a legal process that should be completed through a solicitor or conveyancing firm.