You’ve saved your deposit and you’re ready to start looking at properties, but have you considered all the details? Here are 10 questions to which you need answers.
A finance and mortgage brokers job involve negotiating with financial institutions, banks and credit unions to source the right lending products based on each client’s individual needs, goals and history. At Acquired, we compare over 20 lenders with a broad range of options, meaning our resources can be a lot more comprehensive than what you may be able to research.
While a bank will only offer you its own products, a credit adviser is an industry expert who will take the guesswork out of finding the mortgage to find you a product that suits your you and your needs. The cheapest may not be the best suited, and we can assess your situation and goals to find a solution that works. Want to know the best time to speak with a broker? It may be different than you think.
A good rule of thumb is to inspect at least 15 properties to get a feel for the market and also to
check rich property data reports on sale prices.
The larger your deposit, the better. Sometimes you can secure a property with just a
few hundred dollars’ deposit, but most markets still require at least five to 10 per cent deposit and sometimes 20 per cent. The size of
your deposit is one of your most important considerations.
more about LVR here.
You may be able to apply for a deposit guarantee (for up to 48 months). This is a second loan that
covers the deposit.
Ask your credit adviser if you are eligible for the First Home Owners’ Grant. The answer will
depend on the value of the property, whether you are purchasing it with help from your parents, whether and how long you intend to live in
the property, whether it is the first property you have purchased and more.
Yes, and there are two kinds. There’s stamp duty on the mortgage itself and on the property. You
may be eligible for a rebate on the second type, so be sure to ask.
To learn more about what stamp duty is check out our recent
or use our stamp
duty calculator to find out how much it could cost in your state.
You need to have the property inspected for structural problems and pests
before purchase and you may need a solicitor or a conveyancer – a specialist property lawyer. Then
there is the cost of actually moving out of one property and into another – allow for removalists, cleaning and any new furniture and
fixtures the new property requires.
Of course, and you may want to shop around, meeting with two or more such providers. Reach out to
friends and family that you trust for recommendations to who they’ve used and the fees they’ve paid. As people often move houses or invest
in property a few times in their life, finding a good connection is important.
Most lenders will require you to pay mortgage insurance if you are borrowing more than 80 per cent
of the property’s value.
Read our guide on Lenders Mortgage Insurance here to find out the value
for first home buyers, how to buy without the 20% deposit and how you could even waive LMI completely!
Check with your adviser as to when you become liable for building insurance. You may also want to think about income protection insurance if you contribute financially to the mortgage or household living expenses. Think about how you would pay your bills if there was a sudden illness or accident. To learn more about why you might consider income protection insurance, read our quick article.
Our approachable team at Acquired have the expertise to help you with these questions and more, guiding you through the journey to home ownership.