Buying your first property in Canberra is an exhilarating milestone, and there are government grants available at both the federal and state levels for eligible first home buyers. These grants are specifically designed to assist individuals in entering the property market and are applicable to those purchasing their first home for residential purposes. The grant amount varies depending on the state and is subject to specific conditions related to the age and sale price of the property. Here are links for the relevant websites for further information.
By considering the following factors, you can make informed decisions and navigate the process of securing a suitable home loan with greater confidence:
Determining Your Ideal Home Loan
There is a wide range of home loan options available, and identifying the type of loan that best suits your needs can simplify your search process. This will make it easier to compare loans and decide which lender to approach.
Deposit/ Savings and LMI
Regardless of your current financial situation, there are numerous options available to you. If you require a first-time homebuyer loan, there may be specific asset requirements. It is recommended that your savings account holds at least 5% of the property value for a minimum of one month. The deposit amount can range from 0% to 20%. Maximum rates apply to certain regions and individuals with poor credit ratings. If you have a guarantor, it is possible to borrow up to 100% of the total property value. LMI can be advantageous for first home buyers looking to enter the market sooner without a substantial deposit. However, if you have the time, saving up a 20% deposit can help you bypass the additional cost of LMI and ultimately pay less interest over the loan’s term.
Familiarize Yourself with the Expenses
While it’s known that a deposit is required to obtain a home loan, there are other upfront costs to consider as well. Understanding these expenses and estimating the amounts you’ll need to pay can help you avoid unpleasant surprises in the future.
Consider a Building Inspection
Engaging a professional for a building inspection can unveil any defects, damages, or potential issues that a property may have, allowing you to avoid unpleasant surprises. Conducting an inspection on your prospective new home can help you prepare for any future expenses or make an informed decision to avoid properties with significant concerns.
Assess Comparison Rates
When reviewing interest rates, you’ll often encounter a comparison rate alongside them. Comparison rates take into account additional fees associated with a home loan, providing a more accurate representation of its overall cost. A higher comparison rate typically implies higher ongoing and annual fees, while a lower comparison rate suggests fewer fees.
Seek Professional Assistance Today in Canberra