Purchasing your first home is often the most important financial decision you will make. While you are likely to sell your first home and purchase a second or third property over your life, the first property you purchase will often influence your purchasing capacity in the future.
Further your first home can be the most difficult to finance as you do not have security of a second property to assist with securing the financing you require.
Key Steps / Processes Involved:
What is the average length of a mortgage?
A standard home loan will be based on a 30 year period.
Should I fix the interest or go with variable interest rate?
The answer to this question depends on your specific requirements. However some considerations when deciding include:
What is redraw?
If your loan provider allows for redraw it effectively means that you are able to redraw on any repayments over and above the minimum repayments that were required.
What is an offset account?
An offset account is an account that is linked to your home loan. Any funds in your offset account effectively reduce the balance outstanding that is used when calculating the interest you owe the bank. For example:
Home Loan - $300,000
Offset Account - $50,000
Loan Balance - $250,000
How much deposit do I require?
As a guide banks prefer you to have a minimum of a 20% deposit. This also allows you to avoid any lenders mortgage insurance which is required for deposits of less than 20%
Brookline Group is a finance broker that can help you secure the financing you need for your first home. We offer all customers a no obligation initial consultation to explain how we can help you achieve your goal of purchasing your first property.