I'm a first home buyer
As exciting as it is to buy a home for the first time, it is a journey that is full of important choices from deciding on which property to choose to finding the best way to finance it. The key to getting it right is to do your research thoroughly; ask questions, and make informed comparisons on what represents real value.
Saving for your first home
If you need help saving for your first home, consider the Members Equity Bank First Home Saver Account.
Tips for first home buyers
Check if you are eligible to receive a one-off payment from the Federal Government via the 'First Home Owner Grant'.
In assessing home loan interest rates offered by various lenders, always use the comparison rate. This is the most accurate measure of your ongoing repayment costs because it takes into account the varying fees and charges you'll be asked to pay.
Understanding financial speak will help you to make better informed home loan decisions.
Beyond your loan repayments, remember to budget for other ongoing costs of home ownership, such as insurance, council rates and unforeseen repairs.
Take a look at our Home Loan products.
Some Simple Guidelines to Buying Real Estate
Before you begin searching:
1. Choose your preferred suburb/locality
You may have a particular reason for wanting to move into a certain area, such as proximity to work or schools, or personal reasons like wanting to be close to family or friends, the beach, or even cafes and restaurants.
However, if you're more flexible in where you're happy to live, you may want to consider looking for suburbs where property values could be on the rise.
Talking to estate agents can be a valuable way of finding out the pros and cons of where you want to live. Often, it can also pay to look at cheaper suburbs located next to more expensive suburbs with homes of a similar style, they often have real potential to increase in value over time.
2. Get your loan pre-approved.
Pre-approval gives you the confidence of knowing how much you can afford before you start searching.
You'll normally need to provide the following information when you apply to your lender:
- How much you earn each month
- Details of any existing loans, such as personal loans, leasing and any other personal debts
- Information about any credit or store cards, including credit limits and current balances
- Details of savings and investments, including account details and credit balances
- If you are renting, your landlord's name and phone number
- A list of other assets, including investment properties, shares, car(s), furniture, other insured assets and their value
- Details of insurance policies and superannuation
- Living expenses, calculated on a per month basis
- Information to satisfy your lenders identification requirements eg. driver's licence details or passport details
- Solicitor's/conveyancer's details
- Details of the new/existing home to be offered as security (unless you are seeking pre-approval)
3. Plan to do plenty of searching!
It pays to take the time to get a good idea of the shape of the real estate market, so you know when you're getting a good deal.
Inspect as many properties as you can before you make your choice on the one for you.
Before you buy your property
Be aware of extra expenses.
When buying a house, make sure you take into account things like taxes, stamp duty, council rates, strata fees, insurance, maintenance costs, and costs of utilities such as gas, water and electricity.
Have a professional building inspection carried out on the home.
Don't leave anything to chance. Make sure you use a qualified, reputable inspection service to search inside and out for potential problems - particularly termites.
Inspect the property yourself before you settle.
Visit the property after the previous owners have moved out. Make sure the property has been left in accordance with the agreement you have made in the purchase contract.
* Interest rate is current as at 22-Nov-2008 and is fixed until 28-Feb-2009. After 28-Feb-2009, the interest rate reverts to the standard variable FHSA interest rate which is currently 8.00% p.a. and is subject to change.
Related Links
Home loan tools
Repayment Calculators
Other tools
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