One of my greatest pleasures as a mortgage broker at Smartline Rockingham is helping a young family buy their first home. I don’t think there is anything like the excitement on the faces of a family when their home loan goes through and they know they will soon be buying a home for the first time.
We know it can be tough to buy your first home. We especially know about the three biggest obstacles for first home buyers. Here is a guide to overcoming them.
Saving Up for Your First Deposit
According to a recent report commissioned by BankWest, it takes the average Australian slightly longer than four years to save the 20% deposit on a first home. While some people can obtain home loans for less than 20%, they have to buy lender’s insurance and pay a higher interest rate.
We have found that a practical way to save for a first deposit is to assess your income and “outgo.” Then, create a budget and stick to it. You will make sacrifices but it will be worth it in the long run.
Finding the Right Loan
When you don’t have a long record of established credit, it can be difficult to find a loan with the rates and terms that are right for you. It is crucial to find the right mortgage broker to ensure that your rates and terms result in an affordable mortgage for you.
Your income and the amount you have saved for a deposit are important factors but they aren’t the only ones. A great mortgage broker with access to multiple lenders can go a long way towards getting you a loan that will fit your situation.
Making Mortgage Repayments
Especially the first few years, you may find it tough to make mortgage repayments. But as you advance in your career and inflation increases your income, your mortgage repayments will represent a decreasing percentage of your income. The trick is to be merciless in executing your budget.
Call Your Trusted Mortgage Broker in Rockingham
To learn more, call Smartline Rockingham today: (08) 9527 1800.