Tips For First-Time Home Buyers In Australia
The process of purchasing a home is not the same everywhere, and it’s helpful to understand the dos and don’ts of your neck of the woods. Buying a home is an exciting time in life, and knowing all there is to know about the process will help you get a better deal in the end.
If you have made Australia your place to be, then you’ll want to purchase your own piece of paradise one day. Take this day to read up on a few tips for first-time home buyers in Australia, and start planning for the future now.
Check that you’re eligible for a home loan
Before you get yourself too excited about buying a home, you need to find out if you’re eligible for a home loan. Houses are expensive. Unless you have hundreds of thousands sitting in the bank, you’re going to need some help working out payment.
You’ll also need a pre-approval letter before you’re ready to make an offer on a property. Take the time to see what home loans you qualify to receive, and find a deal that works well with your financial state.
Sort out some of your debt
You may find that you need to clean up your financial history a bit before you take the plunge on a new home. Your debts can make all the difference between an affordable home loan rate and complete insanity.
Take the time to evaluate your financial history, and clean up the things that you can manage. If you have a lot of credit card debt, try consolidating the debt into one payment.
Check out the First Home Owner Grant
The very first time an individual purchases a property in Australia, they are granted a one-time financial blessing from the government. However, the First Home Owner Grant only applies if you are legitimately making the very first purchase of property, ever in your life.
Don’t pass on the opportunity to apply for the grant, as it could save you several thousands of dollars on the price of your new home. Also, if you don’t use it the first time you purchase a home, you won’t get another shot.
Understand the true cost of buying a home
There’s more to the cost of purchasing a home than the “sticker” price. When you purchase a home, you’ll need money for several things. Here is a quick list of some of the most impactful costs you’ll encounter when buying a home in Australia.
- You’ll need around 10-20 percent of the cost of the home for a deposit.
- You’ll need Lender’s Mortgage Insurance.
- You will have to pay your stamp duty taxes.
- You’ll have to pay legal fees for the process.
- It costs money to apply for a mortgage loan.
- Building and pest inspections are also vital.
Overall, there are many variables to consider as you walk through the process of purchasing a home. It’s best that you take your time with each step, and always research anything that doesn’t make full sense.