Are you buying your first home in New South Wales? Congratulations! This is a huge life milestone and a massive step towards achieving the future you want for yourself and your family.
So, how do you begin? To help you along the way, we’ve prepared a handy first-home-buying checklist, which gives first home buyers the understanding they need to make great decisions in the housing market. Read on to discover more.
Your Deposit
The deposit is the first step on your journey to buying a first home. As a first-time buyer, you don’t have any existing property to draw upon, so you will need to make sure you have enough capital to put down as a deposit before you get a home loan.
The deposit might require you to put forward as much as 20% of the total property value. However, you may be able to buy your first home in New South Wales with a deposit as low as 5% to 10% — decide on how much you want to put down, consider how much money you can draw upon, and plan your mortgage strategy.
Your Finances
After you’ve paid your deposit, you’ll need to service your mortgage until it is paid off. This means you’ll have an ongoing monthly cost that you’ll need to cover: your monthly home loan repayments plus interest, lenders mortgage insurance (LMI) and other possible charges. You’ll need to know how much you can afford to pay each month before you decide on your property purchase.
You’ll also need to think about how much you’ll be able to borrow. This means looking into your current credit and learning more about how much borrowing capacity is available to you. Understanding these aspects of your finances will help you find the right property and secure a manageable home loan.
Government Grants
First home buyers in New South Wales might be eligible for a range of grants from the government. It’s worth taking the time to understand your eligibility for these grants and to discover what assistance you might be able to get.
For example, the NSW government offers the Shared Equity Home Buyer Helper scheme to help property purchasers who meet the requirements. Under this scheme, the state government will contribute money towards the deposit. This gives individuals and families the opportunity to buy their own homes with only a 2% deposit.
Your Pre-Approval
Getting pre-approved for a mortgage is an essential part of the first-home-buying checklist. Pre-approval streamlines the final approval process once you have found the right first home to buy, reducing any potential delays and getting you into your property faster. It also helps you lock in potentially advantageous interest rates, eliminating some of the stress and uncertainty when you buy.
Fees and Charges
You will be responsible for covering some fees and charges associated with buying your first home. This might include conveyancing fees and closing costs that are prerequisites to completing the transaction. Take the time to understand what fees and charges you’ll need to pay. Then, factor these additional costs into your upfront and ongoing payment calculations so that all of your transactions go smoothly and you don’t risk losing your property.
The Missing Piece in Your Checklist — Sydney Brokers
To tie all of this together and help you succeed on your first home-buying journey, you need a broker. But not just any broker will do. You need someone who can provide you with a wealth of different options from various loan providers. You need a professional team that takes the time to understand your needs and situation before they put forth any candidate home loan providers.
This is where Sydney Brokers makes a real difference for those buying their first home in New South Wales. We have the experience and expertise to help you prepare for the property transaction. We also enjoy a strong network of relationships with leading loan providers in the region. This makes us ideally positioned to help you find the best mortgage options.
Get in touch today, tell us what you need, and together we can get your foot on the first rung of the property ladder.