First Home Buyers
The Loans Cafe team have help almost 1000 first home buyers move into their dream home. With the current government incentives and interest rates at historic lows, its never been a better time to consider your first purchase. First home buyer lending applications need special preparation and consideration.
As The Loans Cafe are First home Buyer experts....Let us do the investigations, preparations and submissions for you...it makes the whole process easier and faster. Call us on 1300 135 560 or click the button below.
First Home Buyer "Top Tips"
The Loans Café believes first home buyers should consider the following key points when selecting a first home loan:
1. Study your choices. There are literally hundreds of home loan product options and securing an interest rate reduction of just 0.25% on an average home loan can result in thousands of dollars in savings over the life of the loan.
2. If you are borrowing more than $250,000, check if you can qualify for a 'professional package'. This home loan packages give discounts on interest rates as well as offer other benefits.
3. Consider all of the costs when choosing a loan. Application and monthly management fees, for example, can considerably add to the overall cost of a home loan that might be advertised at a very low interest rate.
4. Check the terms and conditions of a home loan. Low introduction home loans, for example, may have high breaking costs or might revert to a high interest rate making this kind of home loan an expensive option.
5. Determine how long you plan to hold the property. For example, if it is for a short period of time, then a home loan that offers very flexible conditions might be an attractive option.
6. Consider a home loan option that allows you the ability quickly reduce your home loan debt commitments. Through the use of 'offset' accounts, it is possible for a borrower to reduce the term of the home loan and perhaps save thousands of dollars in interest repayments.
7. Make sure that you consider 'surprise' costs when applying for the home loan I.e. mortgage insurance. It is also worth considering unexpected circumstances. For example, if you are undertaking a long term financial commitment such as a home you, you should review your life insurance policy and update your will especially if you have dependents.
8. If you want to work within a certain home budget then you could consider fixing part of the home loan.
9. Consider the long term equity growth of the property you are buying. The higher the capital growth of the property the better chance in later life you will have to upgrade to a better home or even buy an investment property. REIWA can first home buyers with capital growth rates for most Perth suburbs over the last five years.
