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Having a place to call your own doesn't have to stay a dream. We’ve put together 9 key questions to see if you’re ready to take the plunge.
Saving for a deposit can be tough. You need to stick to a budget and be willing to make sacrifices to get a lump sum together. If you don't have a deposit, you might be able to use a guarantor to secure your loan. This might be a family member, who can offer equity in their own property as a guarantee against your loan repayments.
A deposit, whether through savings or a guarantor, usually means you can avoid lenders mortgage insurance.
If you’re buying your first home, you may be entitled to the Queensland First Home Buyers Grant. Depending on the date of your contract, you’ll get $15,000 or $20,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000).
You must meet a range of conditions to be eligible for the first home buyers grant, including not owning property before, and agreeing you will live in the property for at least 6 months from settlement.
There are different types of home loans to suit your situation. You can choose from variable interest rate loans, fixed rate loans or a line of credit loan.
It's a good idea to get across this type of information before you start looking at properties for sale. When you find a house you fall in love with, it can be tempting to make quick decisions, and your emotions may cloud your reasoning on the best financial choices for you and your family.
You can use the QBANK loan comparison calculator to check which type of loan will work for you.
Be prepared for other costs in the buying process including:
These type of expenses mean you’ll need access to more than just the deposit.
Buying a home is a long-term commitment. Take a look at your circumstances now and think about where you might be in 5 years. Will a home you can afford to buy now still suit you then? What if you start a family? Are you hoping to make a big career change or start your own business? Will the location still be suitable if you change jobs?
These are all things that may affect your decision on whether to buy now, what type of home you buy, and where.
Buying a new or established home or building one yourself both have pros and cons.
Buying an existing home means a more established neighbourhood, mature trees and landscaping and more services and activities already around you. Your lead time to move in is also likely to be much shorter than waiting on construction to finish.
Building can mean lower prices and tax benefits. If you buy off the plan before construction starts, you might get a chance to personalise your home by choosing layouts and fittings. Newly built homes are also likely to be more energy efficient and come with construction warranties to cover any issues.
Remember, if you want to qualify for the Queensland First Home Buyers Grant your property needs to be a new construction.
Do you know what your monthly repayments will be? You can calculate your payments using the QBANK loan payment calculator.
Now’s a good time to put together a comprehensive household budget including all of your monthly expenses. If you’re not sure if you’ll have enough to get by once your mortgage is paid, you might need to think about saving more or look at a less expensive property.
Are you in a stable and secure role where you know you can depend on your salary to make your mortgage repayments? Do your sums and be realistic about what you can afford.
Some people think they should buy a home because their rent is almost as high as a mortgage payment. If you’ve been renting, you might be surprised at the extra costs of owning your own home, including:
Are you prepared if interest rates rise and your repayments increase? Depending on the type of home loan you have, (variable interest rate loans, fixed rate loans or a line of credit loan), changes to the interest rate can affect homeowners in different ways.
Before you decide to go ahead with your loan, look at some different scenarios to see how you would cope with an increased repayment. Are there other things in your budget you can cut back on? Depending on your circumstances, you might be better off with a less expensive property where you know you could cope with some changes to your repayment.
Buying your first home is a big milestone. You will never forget the feeling of being handed the keys and opening the door to your very own house for the first time!
If you’re good to go and ready to buy your first home, or want to talk about your options, we’d love to help. Contact QBANK to talk about our award-winning home loans or call us on 13 77 28.
QBANK has recently been alerted to fraudulent activity. Queensland Police have today released a warning for members of the public as Automatic Teller Machine (ATM) card skimming devices have been detected on several ATMs across Metropolitan Brisbane.
As these devastating fires continue to engulf our nation, our thoughts are with our emergency services, those helping evacuate and assist on the frontline, and the communities & families that are suffering during this unprecedented disaster.
QBANK is looking forward to helping even more of our members get into the property market for the first time, after being selected as a panel lender under the Australian Government’s new First Home Loan Deposit Scheme (FHLDS).