Are you looking to take out your first home loan and achieve the great Australian dream?
Home ownership is a widespread ambition in our country, as it can provide long-term economic benefits in addition to security of residence.
The property market has been frenetic of late, with demand being driven largely by the historically low interest rates that have made home loan repayments easier to manage.In fact, data from the Australian Bureau of Statistics reveals that the average first home buyer loan in June was $340,200 – a record high and an increase of 10.2 per cent from the same time last year.
You may be thinking if that’s the average, how much can I borrow? Before you make any commitments, it’s a good idea to be well informed.
Here’s a couple of common mistakes made by first home buyers to help ensure you don’t do the same!
Not doing their research
Often, the excitement of getting a grasp on the property ladder can become overwhelming, resulting in you paying more for a property than what it’s worth.
If you’ve found a property you would like to purchase with your first home loan, it’s vital that you study the area inside out via market reports, blogs and books.
How much have homes been selling for in the past? What are the prices like in comparison to surrounding suburbs? Are there any developments scheduled in the future?
The answers to these questions can tell you a lot about the growth of the particular location, and any potential developments in the future.
Spending money they don’t have
The very same emotions that can influence an uninformed purchase are also capable of persuading you to buy a home you can’t afford.
When thrown into a competitive environment like an auction, it’s quite easy for passion to overtake your better sense.
Mortgage brokers can help negate this undesirable effect. In addition to being paired up with the lender with the most suitable home loan package for your needs, you will be able to get pre-approved finance.
Usually, you won’t have to make any financial commitments until you actually require the home loan. The rationale for going pre-approved is that you will be aware of your exact limit, and therefore know not to exceed it!
If you would like to know more about taking out your first home loan, you should talk to a professional.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.