Home Buyers Should Look Before They Leap

There are many pitfalls for unwary homebuyers, especially the young first home buyers. However, there are a few simple precautions that you can take to make the experience of buying a property an enjoyable and profitable one.

1. Get into the ‘saving’ habit.

Having a reasonable deposit gives many options with regard to choosing a lender.  It also assists in proving you can manage your spending, with proven lower living expenses increasing your ability to obtain a loan.

2. Control existing debt.

Be responsible with existing debts.  How you manage your credit cards, car loans or personal loans, determines your credit profile in buying a house. Making repayments on time is important, having a debt default is a major hurdle to overcome. Speak to your broker about if it is best to pay out existing debt or not, there is a balance between needing deposit and needing free monthly cash flow, this will vary person to person, you should seek personal advice.

3. Understand property costs.

Learn the actual cost of buying and owning a property. Repaying the loan is only the start. There are fixed expenses such as council and water rates and on-going variable expenses like utilities and maintenance.

4. Know your limits.

Only go house hunting after you know how much you can borrow and what purchase price you can afford. There is no point in setting your heart on a house that is out of your price range.

5. Compare lenders, and loan products.

There are hundreds of loan products in the marketplace, each has its place and purpose. Shop around for the loan product most appropriate to your personal requirements, one that suits your budget and your circumstances.

The above may sound daunting, but it need not be. We are here to help you make the experience of purchasing a house stress-free – call us anytime to discuss your financial needs!


Integrity Finance Australia– Changing Lives

Daryl Borden, your Dingley Village Mortgage Broker, Ph. 03 9511 8883 ACL 392184