Money Buddy guide to â€¦ buying your first house
The task of buying the perfect home for you and your family can be a daunting prospect, with the necessary financial considerations a seemingly endless list of outgoings. So where do you start?
The First Home Owner's Grant
The grants available differ from state to state. For the most recent grants, from every state see our First Home Owners Grant Guide.
How much can I borrow?
Every lender is different but as a general rule of thumb, most lenders will offer owner-occupiers up to 95% of the total purchase price. Some loans are designed to cover the full purchase price, however these loans often come with limitations, higher fees or additional conditions attached, so always remember to read the fine print.
The total amount loaned will depend on a number of variables, such as family income and expenditure.
Saving for your home
A deposit is just one cost associated with buying a house. Others include:
- Loan application fees.
- Stamp duty.
- Legal costs.
- Insurance â€“ including mortgage cover, home buildings and contents.
- Inspection fees â€“ including building and pest inspections.
- Utility connections â€“ water, electricity, gas, telephone.
- Council rates.
By setting realistic goals, cutting back on unnecessary costs and keeping to a budget, saving for your first home doesn't have to be an impossible task.
The home buying process
First and foremost you need to know how much you can borrow. Without this information your house hunting could turn out to be a big waste of time. Most lenders offer a pre-approval service in which you can find out exactly how much you can borrow, even before you begin your search.
Have a good idea of what you are looking for including location, size, type of dwelling and price. Don't be pressured into making a decision by the real estate agent; take your time, because it could end up being the most expensive mistake of your life.
When you finally find that perfect home, transfer of title is a necessary legal process. This can be completed through either a solicitor or conveyancing firm. There are kits available to help you complete this process yourself, however it is a complicated procedure and not recommended for the novice.
And, finally, consider all the information you can find. This is an important and expensive exercise so, once it's all over and done with, you need to be able to relax and enjoy your new home.