So, you’ve decided to take the next step in life and purchase your very own property. Fantastic! Home ownership remains an essential component of the Australian dream, and while it isn’t always easy, there are few things more satisfying than being able to call a property your own. Of course, the process of buying a home involves many steps, including securing a home loan. In this article, we’ll take a closer look at the steps you’ll need to take, as well as how to secure the finance you’ll need.
Buying a home in Australia
The first step on the road to home ownership is doing your research. Even if you know the city and area you’d like to buy in, there are all sorts of other considerations. These include practical aspects such as price range and proximity to transport routes, as well as other factors that may be more or less important depending on your personal circumstances – such as the quality of local schools.
Once you have a better idea of the property options, it’s time to start looking seriously. By this stage, you should also be well on the way to having enough money saved up for your deposit. In general, the more you can put towards a deposit the better, as you’ll be able to secure a more expensive property and pay less in Lenders Mortgage Insurance and mortgage repayments. While you’re looking for the perfect property, it’s a good idea to get a head start on the financial side of things, which is why we recommend you get in touch with your Smartline Adviser as early as possible in the process.
Securing a home loan
When you first meet with your Smartline Adviser, they’ll help you work out exactly how much you can borrow and outline the options available – including repayments. As part of this initial interview, you and your Adviser will discuss:
- the objectives and purpose of your loan
- the product parameters that meet your needs (e.g. repayment terms)
- your financial goals, both long and short-term
- any potential changes to your situation that may affect your capacity to make repayments, and
- your typical living expenses.
Your adviser will also help you fill out the required paperwork, before packaging your loan application and lodging it with your preferred lender.
From there, the lender will assess your application before deciding whether to approve the loan. If all goes well, you’ll receive your loan offer shortly after. Hopefully, by this time you’ll have found the home you want to make an offer on, and with finance all lined up, you’ll be able to bid with confidence. From there, it’s a simple matter of signing the relevant documents and completing settlement.
The only thing left after that is to move in and start making the most of your new home! When you’re prepared and proactive, the process doesn’t have to be daunting and if you have any questions at all about the loan side of things, talk to your Smartline Adviser today.