There are so many things to think about when buying your first home; the area you want to live, how much you can borrow, First Home Owner Grant eligibility, whether you have enough money saved as a deposit. As it happens, you’ve downloaded the right guide to fast-track the purchase of your first home.
The media don’t help, do they! Splashed across the front page of the paper or in the 5pm bulletin, you can almost guarantee there will be a piece on the daily struggle First Home Buyers face to get their foot in the property market. And don’t you know it. You’re so sick of paying rent, after all; that’s extra money you could be saving. And every dollar you’re currently saving doesn’t seem to bring you any closer to purchasing your dream house because the prices just keep escalating. Don’t worry, I understand. And I can help you work through these challenges.
Let’s run through six easy steps to fast track the purchase of your first home.
As a Mortgage Broker, nothing gives me greater satisfaction than seeing one of my customers place a sold sticker on their first home. The excitement beams from their eyes, and I can’t help but be excited for them!
Often when I meet people who are considering purchasing their first home, they are confused, and have questions about how to buy, how much they can borrow, and whether they will get approved. Three overwhelming thoughts indeed.
Well, I’m happy to tell you that there is rarely a situation where I meet with a first home buyer and they cannot begin to take steps towards securing their dream home.
My promise to you is this; if you follow the steps in this guide, you will buy your first home whether it be tomorrow, in three months, or sometime in the future. I promise to point you in the right direction.
My name is Eddie Biesenbach and I am a Mortgage Broker who specialises in working with first home buyers. I am very fortunate to be a Mortgage Broker as every day I help my client’s dreams come true. My work gives me a great sense of satisfaction, especially when I can help my clients get a result they never thought possible.
Step one: Create a budget and set your savings goal
No matter what type of home you want to buy, you will need to save a deposit. Start by putting together a budget to see how much you can realistically allocate to your savings account each month. There are several free online resources you can use. The first which comes to mind is the Sorted Online Budget.
Developing a budget will force you to analyse your current spending to see where your money is going, and what costs are unnecessary.
To keep you motivated and accountable, acknowledge and celebrate when you achieve each saving milestone. Opening a separate savings account will help get you there by removing the temptation to spend your savings.
The size of your deposit is a really important factor in your first home buyer journey. A larger purchase deposit may mean a lower interest rate, as you become less risky to the lender. It may also mean you avoid Lenders Mortgage Insurance (LMI) which protects the lender – not you – if you cannot afford your mortgage. So, it would be a significant benefit if you could avoid this cost, and would mean additional money in your back pocket.
Step Two: Look for helping hands; i.e. parents, grandparents, the government (FHOG & Stamp Duty Concessions)
As a Mortgage Broker, I frequently speak with the parents and grandparents of First Home Buyers. They are eager to help their children take the first step in the property market provided they are in a position to do so and there is minimal risk involved..
Your parents or grand-parents could help you in three ways; valuable advice, a monetary gift, or a family guarantee.
Valuable advice is self-explanatory. They have been there, done that; sharing their key learning along the way.
They may gift you a sum of money to boost your deposit, securing the home of your dreams...
Or, they may help you through a family guarantee, which actually involves no physical cash.