How do we get Pre-approved Finance?
Get the best independent financial advice you can about how to get the best mortgage for your situation at the best price.
We have access to several independent, suitably qualified and accredited Mortgage Brokers who can assist you to apply for your loan and obtain your finance pre-approval.
What’s the minimum deposit? 10% or 20%
Some Lenders will provide you with a 1st mortgage over your property with you putting up a 10% deposit, but there are many factors the lender will consider; such as your income, your current debt, any credit cards you hold, your outgoings, any Hire Purchase you may be paying off.
What other costs are we likely to face?
In the process of purchasing your 1st home, there are a number of one-off costs charged by government and lending institutions. These include and are not limited to:
- Transfer registration fee
- Mortgage registration
- Loan establishment fee
- Lenders’ mortgage insurance
While typically these individual costs are not excessively high, they can add up and are still something to consider when purchasing your first home.
What is Lenders Mortgage Insurance? Do we have to pay it?
Lenders Mortgage Insurance (LMI) is an insurance fee the bank charges you for them to insure the loan if you do not have a 20% deposit to put towards the purchase. If you do not have 20% deposit you will need to pay LMI and the amount varies from Lender to Lender
What are our likely mortgage repayments?
What about a solicitor?
You will require a solicitor and their role is to review the contracts and approve all paperwork to ensure legal title of the property to you as the new owner.
Your solicitor is responsible for taking care of the legalities of purchasing your new home. Depending upon where you live or any other factors – we can recommend one of several independent & affordable solicitors who specialise in conveyancing and can take care of all of the legal work for you.
What else do we need to do?
You need to enquire about:
House Removal Fees
It is advisable to get a number of quotes to have your furniture moved as prices can vary between cartage firms.
- Get your electricity connected
- Having Gas bottles delivered and connected
- Arrange for the Internet connection
What are the on-going costs of ownership?
You will have the cost of:
- House and Contents Insurance
- Council Rates
- Water Rates
Fortunately when you buy Freehold House and Land there are: NO Body Corporate Fees
Once you have found out from your Lender how much you can borrow (“your borrowing capacity”) and what deposit you need; there are 5 key points to consider
- Where do we want to buy, how much is the land and what can we afford to buy?
- What size are the blocks and what will it cost us to build?
- Use the 50/50 Rule. Today it is more like 45/55 to decide: How much to spend on the Land & how much to spend on the Build? Land will appreciate but it is your choice of home and its features that will give you the lifestyle you want.
- With blocks getting smaller the accent is not so much on the back yard as most new estates come with dedicated recreational areas, with outdoor equipment, walking and riding trails.
- When you buy land – ensure you leave enough to complete the build and pay for other costs.
Ask yourself these questions:
- How big a house can we buy?
- What size are the rooms?
- What inclusions come with it?
- What features do we want in our home?
- Will this design meet our lifestyle requirements?
- Is there adequate storage and wardrobe space?
- Does it come with Air Conditioning and higher ceilings?
- Are we getting “Fair Value” for the money we are spending?
A larger quality home will be valued more favorably than a small 160m2 “shoe box”. In the future you may want to rent it out & if you really like your home others probably will too.