Updated: March 10, 2015
Do you have friends living in Australia, or know someone who’s planning to migrate there? Then this article is for them.
Today, our friends from First Home Owners Grant shares some tips on how to buy your first home in Australia.
Owning your very first home is the Australian dream, but in this uncertain financial market, even with low interest rates, not everyone can achieve this dream. So here are 5 tips to help aspiring young home owners, achieve their goal of owning their own home:
1. Consider using a mortgage broker
Since this is your first foray into the real estate market, a mortgage broker can help you through the process, take care of most of the paperwork and find you the best mortgage for your budget. They also do not charge you any fees, as the money they earn comes from the financial lender who offers you a mortgage. So you have access to all of their expertise, but you do not have to pay them any of your hard earned money.
2. Plan a budget
If you want to save for a home, you must plan a workable budget, one that you can live within, whilst at the same time putting away money into some type of savings plan. Don’t forget you will need to save additional money to pay for real estate agents fees as well as moving costs.
3. Save a deposit
There are very few 100% mortgages available today and the vast majority of mortgages require a sizable deposit. The plus is that a good sized deposit reduces the amount of money you need to borrow – so saving a deposit does benefit you in the long run.
4. Pay off outstanding debts
The last thing you want when you have a mortgage is outstanding debts as well. Even more important is that mortgage lenders will look at the size of any existing debts to determine whether they will give you a mortgage, as well as the dollar amount of that mortgage. If you have too many large debts, you might not be offered a mortgage – so it really is important to pay all of your debts before you look for a mortgage.
5. Apply for the First Home Owners Grant
Many mortgage lenders will take the First Home Owners Grant as part of your deposit, which is a huge help when you are saving for a home. The size of this grant can change over time and is also different depending on where you live in Australia. This grant however, will be a major help in obtaining your dream of owning your very first home.
It is best to apply for your First Home Owners Grant when you are ready to organise a mortgage. Find out more about the First Home Owners Grant from Homestart.
Disclosure: This is a sponsored post.