First Home Buyer - Considerations and Help

pixpotato on 26/11/2022 - 09:13

I'm looking to purchase my first home (Melbourne) and it looks like my affordability will be limited to a smallish townhouse at best (I don't want apartments).

I was wondering what items I should consider in order to get the best price?
Eg: is it possible to avoid LMI at below 20% deposit?
(one of my friends mentioned something about CA accountants being able to - not that I am one).
What first home grants are out there for not new buildings?
What are the other considerations when it comes to saving money/getting a good deal with your first home?

What are other key considerations from a structural / deed point ot view?

Financial

Comments

  • duk242 on 26/11/2022 - 09:20
    +6

    Find yourself a mortgage broker my dude! At first I was like "Why would I pay someone to do what I can probably work out myself!" But someone recommended that I see a mortgage broker and she helped me out with not only the finance side of things but gave me a bunch of pointers for handling a lot of the other parts of buying a house too.

    You don't actually pay for the mortgage broker, whatever bank you sign up for pays the mortgage broker a fee for signing you up.

    You could still go true ozbargain spirit, hunt around and call the bank to negotiate lower fees, but having someone else handle at least one big chunk of the whole mission makes it a bit easier.

    Also don't forget to get pre-approval for a loan so you know exactly how much you can spend before you get your heart set on a place.

    • pixpotato on 26/11/2022 - 09:53

      Oo amazing points! How did you go about picking the mortgage broker?

      • duk242 on 26/11/2022 - 10:03

        I went off a reccommendation from a friend, she moved up to Airlie beach, but I think she does everything remotely now?

        Here's her website: https://smoothsailingfinance.com.au/

        When she moved businesses she stopped getting the comission from my home loan, but still did an evaluation on my current home loan and recommended that I stay where I am (even though she wouldn't make any commission from it)… Basically: She's got me for life now :P

  • ALesha77 on 30/11/2022 - 18:46
    +2

    What are the other considerations when it comes to saving money/getting a good deal with your first home?

    Hold off and wait for 9-12 months or until RBA will start cutting rates.
    Make sure you can keep you job (if you are a hired gun) within the next 12 months at least.

    In 2023 we will see around 20% of all mortgages rolling off from under 2% to around 6-7% (with RBA targeting 3.5-4% cash rate).
    That will be a huge number of mortgages with re-payments to double or triple and borrowers who will need to sober up.
    There should be plenty of good deals starting mid-next year.

    • pixpotato on 30/11/2022 - 20:03

      Potentially more on the doomsday side of predictions but not wrong either

  • Kinko82 on 08/12/2022 - 13:51
    +1

    Definitely speak to a mortgage broker so they can explain all the federal and state based first home buyer benefits, schemes and grants that you can qualify for.

    Mortgage brokers don’t just help you with interest rates and repayments, a good one will guide you through the entire home buying process and help out you in touch with other professionals that you need such as solicitors, building pest inspectors etc.

    Look at their reviews and also seek recommendations from friends and family, especially someone who is a big advocate for their broker.

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