Chances are you’ve been thinking about your first home for some time, and you already have a pretty good idea of what you’ll need to make this dream a reality. You’ve done the groundwork. You’ve built your budget; you’ve possibly secured assistance from one of the many Government-powered First Home Buyer Grants and you’ve mapped out the potential costs involved. So now what?
It’s time to find your home and your loan. We’ll look at how you start the property search. What you need to look for when buying your first home. And, of course, home loans.
What to look out for when buying a house?
The budget is clear; you’ve established your price range and have a good idea of how much you’ll need to borrow.
First things first, what is your goal? You may be looking for a home to live in and grow in or turn it into an investment property down the track. Getting clear on your property goal can help guide you on your research.
The Property Search
- Knowing the market: to gauge property type, location preferences and the value of a home. Tip: you’ll want to watch the market trends, such as days on the market, vacancy rate of the area and rental yields.
- Location, location, location: whether for reasons of your price range or lifestyle, the location will ultimately come into play. Tip: consider infrastructure or future development plans to assess potential growth and livability.
- Comparing similar properties: determine location vs price and property type. Tip: these could be property type and features versus area, or price point versus area.
- Need some extra support? Big tip: talk to your local Premium Banker, they have a wealth of knowledge and can help assess your borrowing capacity so you can better understand the direction to head in. Our Premium Bankers, love chat!
During your property search phase, consider utilising platforms like realestate.com.au, domain.com.au, and Cotality. These websites can help you stay informed about the property market. Additionally, explore tools such as our free personalised Wealth Report to gain insights into your current financial well-being and discover what’s achievable based on your goals.
How does a home loan work?
There’s no one-size-fits-all loan. Just like your first home. Finding the right match will be determined by your budget, repayment needs and the property you’re looking for.
Of course, the rates will come into play. When choosing the right home loan rates, consider the following steps:
- Set a Budget: Before getting a mortgage, budget for both upfront costs (such as the home purchase deposit) and recurring monthly payments. Refer back to our budget & costs involved articles for more steps.
- Pick the Right Loan Term: Decide on the loan term (e.g., 30 years, 40 years) based on your financial goals and circumstances.
- Compare Your Loans: Understand terms, monthly payments, fees, and closing costs. You can do that with our key facts sheet – here. You can compare home loans with our handy calculator.
- Get Pre-Approved: Show sellers and real estate agents that you’re a serious buyer by getting pre-approved for a mortgage. Remember these are conditional and are active for a set timeframe.
To review our home loan interest rates – click here for our current schedule.
Other things to consider when comparing home loans are – is there flexibility with repayments? Are there features such as offset accounts that are available to help pay less in interest?
Yes, it can be information overload sometimes during this process, we get it. To recap, when looking to find your first home and secure a home loan, consider laying those foundational steps to give you clarity of what’s possible with your goals.
We get it, each buyer’s situation is unique, so consult with professionals to tailor your approach to your specific needs. Call us to get started on 1300 360 744 or contact us via email on info@sccu.com.au. Good luck with your home search!
Up next, we go through the process of purchasing your first home! Stay tuned to see how it all starts to come together.
Southern Cross Credit Union Ltd 82 087 650 682 AFSL and Australian Credit Licence 241000. Any advice is general advice only and does not take into account your objectives, financial position or needs (your ‘circumstances’).
