One of the biggest considerations when buying your first home is your home loan. It can feel daunting, as there are a number of options and things to consider, but with a little knowledge you’ll be able to make an informed decision that is right for your situation.
Choose your loan type
This is where expert advice comes in handy. There are different loans available to first home buyers that will suit various budgets, lifestyles and appetites for risk. Your bank or broker may talk through options such as:
No matter which type of home loan you choose, it’s a good idea to shop around and compare rates and conditions. When looking at home loan advertising, keep an eye on the comparison rate, which will give you a more holistic view of the cost of the loan as it includes fees.
Once you’ve selected who you’ll get your home loan with, a good step is to obtain pre-approval.
A loan pre-approval means that a lender has agreed, in principle, on the amount of money they’ll lend you towards buying a home. It’s not the same as full or final approval, but it gives you greater certainty around what you can borrow, helping you to set a budget.
Learn about government support and schemes
There are some great government incentives to support first home buyers to achieve their dreams. Check out the links below to the First Home Owner Grant, HomeBuilder Grant and the First Home Loan Deposit scheme to see if you’re eligible to participate:
The information contained in this article 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, Fairhaven Homes recommends that you consider whether it is appropriate for your circumstances and that you seek independent legal, financial, and taxation advice before acting on any information in this article.