4 simple strategies for first home buyers

 

Buy what you can afford right now

As a first-time buyer, it’s important to know what you can afford to purchase right now. Why wait when you could opt for a cheaper entry point into the market and work your way up the property ladder? As your mortgage broker, we’re here to help you work out your current borrowing capacity, so it’s worth getting in touch.

Borrow up to 95% with Lenders’ Mortgage Insurance

Did you know you may not need a 20% deposit to buy a property? Under some circumstances, you may be able to qualify for a loan for 95% of the purchase price. You would have to pay Lenders’ Mortgage Insurance and strict eligibility criteria will apply, but if it allows you to achieve the dream of homeownership sooner, it may be worth it. Talk to us – we’ll explain whether this option could work for you.

Borrow up to 100% with a Guarantor Loan

A guarantor is someone who will provide a guarantee for your home loan, usually a family member (better known as the ‘bank of mum and dad’). This guarantee is usually secured against the equity in their own property. Once you have paid off part of your home loan, or your property has increased in value, you can apply to have the guarantee removed.

Guarantor Loans are a great idea for first home buyers who do not have a full 20% deposit as they save you from having to pay Lenders’ Mortgage Insurance. Some lenders even allow you to consolidate some of your debts – such as credit cards – when you buy your home. Talk to us if you’d like to find out more.

Have someone with experience on your team!

Our final suggestion is to have someone in your corner who knows the game and how to play it. As your mortgage broker, we’ll do everything we can to help you secure finance for your first home. We know all the lender requirements for every loan and can help keep the application process simple, so please get in touch and have a chat with us about your property purchasing plans and financial goals. We’ll also be here to support you after you make your first home purchase – our long term goal is to help you build wealth for your future through property – so rest assured you’ll always be in safe hands with us as your credit and finance partner!