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10 Tips On How To Buy Your First Home

Kevin Gomer
04 Oct 2016

As many young people and first home owners can agree buying a house with a single or little income in today’s society can be a challenge to many people. Especially when you are buying your first ever home. But there certainly is a way to achieve this, even if the odds are against you. You need to be prepared to work hard and dedicate a lot of time and effort into making sure you are eligible for a home loan by the bank. It will pay off in the long run.

The following tips are designed specifically for someone looking to purchase their first home and not sure exactly where to start.

1. Create a Solid Budget Plan

By working out a budget plan (check out our handy budget planning calculator to work our your budget)  this can help you to save for your end result. Firstly you will need to list all of your current expenses, from bills to food and transport. Remember to over compensate for the utility bills such as electricity, water and gas. Just in case you receive a higher than usual bill that is more than what you expect for the month. This can allow you to be completely covered for any unexpected bills that might pop up.

 

2. Open a High Interest Term Deposit Account

By opening this account it’s a great way to be sure you’re not spending the money you are saving for your mortgage. Set up a direct debit into that account for an amount on the same day of every month. This means you will know exactly how much you need to save by a certain amount of time. More than usual the banks make these accounts hard to access by making one or both owners of the account come into the bank and sign in order to take money out of it. Having this a high interest account means the bank pays you interest on the amount of money that is being deposited into your account every month. Depending on your budget and mortgage repayments, a great starter point is to deposit between $500 and $1000 into this account every month. By depositing such a significant amount of money into your account every month it means you will more than likely need to sacrifice doing other things such as dining out etc. Every little bit where you can budget helps when saving for a home deposit.

 

3. Deposit Extra Cash That You Come Across

If you happen to have any change lying around the house or in your car combine it all into one piggy bank and at the end of every month or so take it into the bank and get it counted and deposit that amount of money straight into your term deposit account. You never know this may actually end up being a lot of money.

 

4. Decrease Your Risk Factor

Banks are always looking to see if you are a risk that might put them in a sticky situation. So in order to prevent them thinking you are a risk being your first home, be sure to calculate the amount you are comfortable with when making repayments for your home loan. With this amount find a rental that is of the same price as what your mortgage repayments would be. (click the link to work our your mortgage repayments)  This will prove to the bank that you can make the repayments in time every month if you were to buy your own house.

 

5. Speak To A Mortgage Broker

Once you have all of these things set in place and are ready to buy a home seek advice from a mortgage broker. At Nicheliving Home Loans we are here to help you! By making it as easy as possible. So we are always looking for ways that can save you money and set you up for a better future. We work together with our clients and find the most affordable loan to suit you and your new home.

 

6. Research Government Incentives

A benefit of working with us as a mortgage broker is that we are able to find the best government schemes and incentives suited to you. For example if it’s your first home we make sure you are eligible for the First Home Owners Grant.

 

7. Research The Market

Along with looking for your first home or deciding where to build, researching the market plays an extremely important part in the process of owning a new home. The best way to do this is to research developments in all areas you are looking to buy or build. Some areas may have potentially more value than other areas. Nicheliving can help you with this as they constantly have new developments coming up all over Perth. Give them a call on 9483 0000 for more information or visit their website to see the best development plan areas that are up and coming in Perth.  Ultimately this could affect you in the long run by potentially increasing the worth of your home when it comes a time you want to sell or invest in a second house.

 

8. Make Extra Repayments

By making extra repayments on your mortgage it brings your interest rate down. This is another way to save you money in the long run.  In the future you will have less money owing to your house which means you can sell your home and get more money back to put towards your future endeavours.

 

9. Opt For Less On Your Home Loan

Try to bring your home loan down to the minimum term and loan amount you possibly can and make extra repayments wherever you can if you are in the right position to do so.  Come a few years down the track you will have more equity on your home, helping you to buy an investment property or potentially sell your first home and build or even move into a bigger dream home.

 

10. Stay Positive

If times get tough, stay positive and remember your overall goal will pay off eventually. Doing all of these things certainly can help you to get where you want to be. Just remember to keep at it and consider other options when making decisions that you know will help your bank account. Once you get started it can only get better from then on. Trust me!

Here at Nicheliving Home Loans we pride ourselves on helping Australians fulfil their dream of owning their own home. If you are still not sure on where to get started and need assistance we are also able to help from the very start by setting up a specifically designed budget plan for you and working with you to build up your savings. Our initial consultation is free of charge as our true purpose is to help our clients! So visit our website on nichelivinghomeloans.com.au or give us a call on 9483 0099 to speak with one of our friendly finance consultants today.nd up being

Buying Your First Home

Admin
10 Oct 2014

First Home Buyer Loans

The decision to buy a home is a very exciting prospect for a first home owner. It’s the stepping stone to one-day achieving the Australian dream, and it’s great that there are incentives in place by the Australian Government to help Australians achieve their goals.

What is the First Home Buyers Grant?

On 1 July 2000, the Australian Government introduced the First Home Owners Grant in a bid to offset the effect of GST on home ownership. The amount eligible applicants are entitled to is undergoing changes at the moment, if you would like to know what you might be eligible for give one of the consultants at Nicheliving Homeloans a call.

Although the scheme operates nationally, Australian states and territories administer it according to its own legislation and the grant amount could vary between them. Choosing your first home loan is one of the biggest decisions you’ll make. That’s why it’s so important to get it right first time.

There are many items to be considered when applying for a home loan. Whether it be what monthly repayments would need to be made, what other fees could be incurred and what features to include in the loan that may benefit your financial situation. This is where Nicheliving Homeloans comes in, we could help walk you through this complicated process and offer you a range of options to suit your needs.

Alternatively, if you walk into a financial institution unprepared and make an application without knowing about the little things that could improve your chances of success, you could run the risk of your application being knocked back.

If this all sounds a bit daunting, you’ll understand why so many home buyers get Nicheliving Homeloans to handle everything for them. After getting a good understanding of your circumstances we’ll examine a wide range of loans before identifying one best suited to you. We’ll explain all the details of the selected loan in plain language and tell you exactly what information we’ll need from you. We could then use our experience to ensure your home application has the best chance of success.

How can Nicheliving Home Loans Help?

Our finance consultants can help you to find out what you could be eligible for and a variety of loan options to suit you. Be it the First Home Owner Grant, your true borrowing capacity, the Reba Grant or lenders mortgage insurance. Our consultants know that you are unique and that your financial decisions should always be tailored for you. Call one of our finance consultants to find out more on 9483 0099, even if you just want to know how much you could borrow.

For more information on the First Home Owner Grant click here or go to our resources page for other useful links.

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