You can probably picture it – that wonderful moment when you walk up to your brand new home and turn that key for the very first time.
As you rush inside, you imagine where you will put the furniture and how you will arrange your belongings.
Room by room, you sweep through the property and are filled with the hope and promise of new memories and events to share.
As far off as this may seem at the beginning of your journey toward property ownership, getting to this point is not as difficult as it may seem.
All it takes is a little bit of planning, some useful financial advice and the right home loan.
Plan for a mortgage
Similar to the saying, ‘don’t plan for the wedding – prepare for a marriage’ aimed at newly engaged couples, goes this advice for prospective first time buyers- ‘don’t plan for the purchase – prepare for the mortgage’.
While this is not flawless logic, it does help you to picture not just buying the house but also the responsibilities associated with long-term ownership.
As soon as you start thinking about buying property, it is advisable that you set up a budget for yourself.
This will help you to save up for a substantial home loan deposit when the time comes and will also help to prepare you for making mortgage repayments for the next several years.
Prospective lenders may also take your saving strategy into account when determining your borrowing capacity – another great reason to get into the habit sooner.
As the largest financial commitment many Australians will make in their lifetime, it is also recommended that you seek professional advice.
Mortgage brokers are well-versed in the borrowing requirements of lenders and all of the various products out there that may suit your personal situation.
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.