Before deciding to purchase your first property there are a quite a few points to consider, most importantly including your current personal circumstances and financial status.
1 Think about the reason you want to buy a home
Will you live in the property or rent it out? This can help determine the kind of loan you apply for and home you and it will also impact on your borrowing capacity. If it is for investment you can include the rental income you will receive in your borrowing capacity but you will also need to include what you are currently paying in rent.
2 Research potential properties and loans
It is important to not just jump straight in, you shoud do some research. Knowing the market is crucial, do some research on the suburbs you are targeting, check out auction clearance rates and recent sales, as well as price trends in the area. Once you are aware of what you are looking for and the approximate price, the next step is saving a deposit.
CBM Mortgages have access to a wide range of lenders and many will allow you to purchase with less then a 20% deposit. If you are providing less then a 20% deposit most lenders will want to see that you have held the equivalent of 5% of the purchase price for more than 3 months in your name. This would normally be in a bank account but could also be in shares. It is important you can demonstrate this so check with CBM Mortgages if you are unsure of the savings process
When applying for a pre-approval your mortgage broker can let you know the repayments on loan you would like so you can make sure that it can be achieved if you wanted to maintain your current lifestyle
3 Factor in other costs involved
Depending on the property, there can be a number of additional costs, so ask your mortgage broker what other payments you will face. This can include, but isn’t limited to, stamp duty, loan establishment fees, legal and conveyance services, utilities, property insurance, maintenance and lenders mortgages insurance. Lenders mortgage insurance is normally applicable if you have less than a 20% deposit. CBM Mortgages have access to onew lender where they will waive the mortgage insurance with a 15% deposit. We can also go as little as a 10% deposit with mortgage insurance waived for certain occupations such as Doctors, Quantity Surveyors, Civil Engineers and certain miners. Certain conditions apply so please contact us here for more information.
4 Think about your future
Your current situation can change for many reasons, you coud have a baby, you could move jobs. There are many changes. If you know there will be changes in your life, will you still be able to afford this property in the future?
5 Get professional help
With so many things to consider, getting professional help is highly recommended and very important in the home buying section. There are many experts in the industry and it is in your best interest to use them for tasks such as property checks, pest checks and any other legal queries. If you are buying a house then you should think about organising a building and pest inspection. If you are buying a unit then a strata report could uncover lots of information including building defects which could force you to contribute to a sinking fund and this would incerase your monthly expenditure. CBM Mortgages have contacts in all of these areas so please feel free to contact us for helpor introductions.
6 Use the CBM Mortgages tools and expertise for free to help you research and buy your property
CBM Mortgages have access to free RP data reports worth over $50 if you order yourself. These reports will give you access to recent sales history of the property, comparable sales and is a great tool in helping you look for property.
Download the CBM Mortgages Smartphone and Ipad app. It's fantastic for first home buyers and it's free. It can help you calculate repayments, calculate stamp duty costs and you can even search for property via the app. It's available on iphone, Android and ipad
We also have some fantastic rates to offer so come and speak to us and save a bundle.