Buying your first home is difficult enough. But on top of that, you might also go through the confusion of trying to understand how everything works. How much deposit do you need? How do you buy a home? What grants can you take advantage of?All in all, it's a dumbfounding world out there when you buy your first home. But don't let all that put you off. That's because we're here to help you. In the following paragraphs, we're going to show you some of the essential things you need to know if you're a first time home buyer. So let's not delay and move on to the essentials.
What You Need to Know About Deposits
Making a deposit on your home works the same way as your other purchases. The bigger your deposit, the smaller the payments you will have to make later on. But what would be the minimum deposit you have to make? Lenders often peg it at 20%. So if you're buying a home that's worth $300,000, you need to deposit at least $60,000, or 20% of the total value.
However, today's economy makes it difficult for a lot of first time buyers to even scrape together enough money for the 20% deposit. There are other options though. Some lenders offer what is known as the Lenders Mortgage Insurance. This is a one-time payment you need to settle with the lender if you are unable to reach the minimum required deposit (usually 20% of the value of the home).
Buying Your Home
Buying your home can be a tedious process that involves a lot of paperwork and money. But you can make it easier on yourself by working with professionals who can help do the job for you. A mortgage broker for example, can connect you with lenders who may have the right type of mortgage based on your needs. A solicitor, meanwhile, can help you with you the legal aspect of buying a home. Finally, your accountant can help you make you look good financially in the eyes of lenders, without increasing the amount of taxes you have to pay.
Then there are grants that will help you buy your first home. The First Home Buyers Grant, for example, gives you $7,000 for your purchase, on top of other concessions that your specific state may provide.
Choosing Your Home Loan
Getting the right home for you is just a part of the big picture. You also need to get the right mortgage for you. What it does is make it more manageable for you to make your repayments, while helping you own your first home. The consultants at Rate Detective can help you as well. They will assess your personal circumstances in order to provide you with a customised rate comparison of Australia's top lender. Contact us today for more details!