9 Quick Mortgage Tips for First Time Buyers

Buying your first home can be quite complicated unless you know what to do. There are fees that need to be paid, requirements that need to be met, and application forms that need to be filled in. But don't worry, because we'll provide you with a crash course on buying your first home in this article. We'll fill you in on the essentials, which will hopefully make the entire process as quick and hassle-free for you as possible. Here's what you need to know:

  1. Using a mortgage broker is probably the easiest way to buy your first home.
    They have the knowledge and the network to do everything for you.
  2. Expect to shell out extra payments on top of your purchase cost. These include: stamp duty, legal fees, building and pest inspections, and maintenance costs. Your exact fees and payments will differ depending on factors such as the type of the property you're buying and its value.
  3. There are several mortgage types. Ask your lender regarding the type of home loans they're providing. As with item number 2, each type comes with different features. It helps to know what your needs are as well as your financial capacity so you can choose the right loan for you.
  4. It pays to get the help of professionals. Aside from your broker, it helps to have extra hands helping you with your new home. For example, a valuer can help you figure out the actual value of the house you wish to buy. Chances are that it is lower than the published one. Knowing this provides you with greater leverage when negotiating for a better deal.
  5. Come in prepared. Before you meet with a potential lender, make sure that you know what the requirements are and have them ready before the meeting. This would help speed up the process for you. Aside from that, it would also help increase your chances of getting approved.
  6. Avoid the Lenders Mortgage Insurance (LMI). If you're borrowing more than 80% of the value of the property, you'll be required by your lender to pay the LMI. To avoid this, ensure you have enough funds to cover more than 20% of the property value as well as applicable fees.
  7. Take advantage of the First Home Owner Grant (FHOG). The FHOG provides first time home buyers with $7,000 plus concessions. This can be helpful reducing some of your costs when acquiring your first property.
  8. Save money faster with First Home Saver Accounts (FHSA). If you're struggling to save money for your deposit, the government can help you with that through the FHSA. They will provide you with a 17% co-contribution for every dollar that you save, up to $935.
  9. Rate Detective can help you get a home loan--fast! Here at Rate Detective, our qualified advisors are ready to help you find a home loan based on your personal circumstances. They will even provide rate comparisons of Australia's top lenders. This enables you to make the right choice when it comes to your mortgage.
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Published on November 11-th, 2012 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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