6 expert tips for buying your first home

We know first home buyers have got it tough. With factors like; rising property prices, a competitive international market and slow wage growth, it’s become increasingly difficult to get your foot in the door.

Keeping this in mind, we compiled a few tips for buying your first home.

See what type of grants you’re able to take advantage of

Both Federal and State Governments in Australia have initiatives open purely to first home buyers to enter the property market. Check what type of grants may be available in your state/territory and what you can leverage to reduce your overall housing/mortgage costs.

Save as much as you can for your first deposit

This helps you in two ways. First, it shows your lender that you’re able to save consistently over an extended period of time, thereby showcasing your ability to meet mortgage commitments. Secondly, it means your loan amount will be less, which translates to less interest over the life of the loan.

Get pre-approved before you start looking

Another tip for buying your first home is getting pre-approval. Pre-approval essentially means that your application for a loan fits the lender’s criteria.

This can put you at an advantage over other buyers, as most sellers are looking to settle quickly. With pre-approval, you’re able to put in a serious offer, with the confidence – from both yourself and the seller – knowing your finances are already organised. It also means you don’t waste time looking at irrelevant properties that aren’t in your price bracket.

Keep in mind that your pre-approval may be subject to a satisfactory valuation of the property you want to buy, or other conditions – check this with your lender.

Go to property inspections with a list of must-haves

There’s nothing quite like the emotional roller coaster of buying your first home. It’s a monumental step and it’s quite easy to let your emotions blind you when it comes to your dream property.

That’s why it pays to have a list of must-haves before the inspections. Come up with a list of features/requirements that your property absolutely must have, alongside features you’re willing to compromise on. If you go to an inspection and find that the property doesn’t have your non-negotiables, move on without any hesitation.

Take everything with a grain of salt

Don’t rely purely on what a real estate agent tells you. Make sure you do your own research, always carry out the necessary building and pest inspections, and find out what similar properties in your desired area have sold for to gain the upper hand with pricing negotiations.

Consider protecting your new home and your ability to meet the repayments

Once you’ve got your loan sorted, it’s time to think about the what ifs. Don’t let a serious injury/illness derail your dream of home ownership. If you haven’t already, consider the risks associated with taking on a serious debt, and how you might protect your new property. You may wish to consider home and contents insurance, and loan protection insurance.

Home and contents insurance provides cover for your home, fixtures and fittings and your belongings. Loan protection insurance provides cover in the event of you involuntarily losing your job, suffering a major illness or injury, or even death.

Have any questions about our Loan Protection Plan? Talk to one of our ALI-authorised mortgage brokers today, or alternatively request your quote here now.

Loan Protection Plan is jointly issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484 (Death, Terminal Illness, Living and Accidental Injury Benefits) and QBE Insurance (Australia) Limited ABN 78 003 191 035 AFSL 239545 (Involuntary Unemployment Benefit). It is distributed by Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSG 226403 (ALI). ALI receives commission for each policy sold. Any advice provided is of a general nature only and does not take into consideration your personal objectives, financial situation or needs. You should consider the Product Disclosure Statement when deciding if this product is appropriate for you.