How To Buy Your First Home In 15 Steps [Infographic]

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How To Buy Your First Home In 15 Steps [Infographic]

Purchasing property is a financially complex endeavor that can cause the naive and unsavvy to waste thousands of dollars unnecessarily. Here are 15 simple steps that will help to point first-time home buyers in the right direction. (Naturally, the first step is to save like crazy.)

For most people, putting a deposit together will be the biggest hurdle in the process โ€” so start saving as hard as you can. Our monthly Ratehacker column rounds up the best deals in everything from credit cards to savings accounts, so that would be a good first port of call. Good luck!

Home Loan Experts

Comments

  • If you already have a mortgage ask for a discount, you’ll sometimes get it!
    My dad did this for his house (and offered to try for mine too). They sent him an offer and he rejected it and the offered a better one!

  • Do people still need to conform to the 20% deposit norm? Will it be more difficult to pay for LMI than to continue saving up for a price that keeps on going up every year?

    • 1. Never be fooled “Lenders Mortgage Insurance” is not an “insurance” for you – it is a fee that lenders charge high-risk borrowers.
      2. House prices don’t “keep on going up every year”. The market might, but your house doesn’t. On average, houses have increased in value each year proportional to CPI + availability of credit to consumers. Availability of credit isn’t expanding the way it used to. CPI is allSave up 5%, then evaluate the option of borrowing 15% from friends & family to get an 80% loan. If you can’t, work out if you are better renting for another couple of years, or paying the bank LMI fee.

      Buy a house because it saves you rent, because it’s where you want to live, becauase you like it, and because it will meet your short and medium term needs. Don’t buy a house to live in because it’s going to make you more money than a term deposit. If you’re buying a house to make money, that’s called an “investment property”. This house is not where you want to live. The way you choose a house to invest in is completely different from the way you choose a home to live in. Trust me on this.

  • and dont buy at house that costs the upper end of you and your partners borrowing capacity. if possible, do it for one persons borrowing capacity. if you’re single, then good luck to you.
    at least get a loan that you can pay more than just the interest back on.

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