Many Australians will find buying their first home at any stage in life to be both a daunting and overwhelming experience. However, the key to making home ownership a reality is to do some homework. If you are a first home buyer and when you read this article you will find some valuable information to help you to make the home loan process easier.
What is a Genuine Savings Deposit Strategy Plan?
If you want to bring your dreams of home ownership to reality, then you will need to scrape together a deposit as most lenders/credit providers will require you to have a genuine savings deposit of at least 5% of the purchase price of the property you want to buy (plus upfront costs). So, it is better that you plan for your deposit in advance as you may be expected to pay between 5-20% of your property’s value as a deposit.
Do I need to create a Personal Budget?
Your strategy plan should also involve creating a "Budget". You can use this handy Budget Planning Calculator to help you work out:
• How much can you afford to borrow?
• The amount you can afford to make in monthly repayments?
When creating your "Budget", you need to determine your current financial situation and your cash flow. For example you will need to:
• Add up everything you earn in a month, then
• Subtract everything you spend such as credit card payments, personal loan payments, food, petrol, utility bills, school and education fees, gym membership, etc.
The difference between the total amount that you earn and the total amount that you spend will be the amount you can afford to make in monthly payments.
What Benefits do First-Time Home Buyers receive?
If you are a first-time home buyer, you may be entitled to the Federal Government's First Home Owner Grant (FHOG) scheme to assist you when you are:
• Purchasing a newly built home;
• Constructing a new home; or
• Purchasing a property "Off-the-Plan".
Depending on which state or territory you live in you may also be entitled to Stamp Duty rebates or exemptions. For more information simply click on http://www.firsthome.gov.au
Seek Expert and Professional Advice
Now that you have read this article you should have a clear understanding of how doing some homework can help you make home ownership for first home buyers a reality. You should also consider seeking help from a professionally qualified finance broker or credit adviser as they can help you answer any further question.
http://www.singhfinance.com.au is a reputed Australian finance brokerage firm that employs a team of expert and professionally qualified finance brokers. Their team of home loan experts will guide you through the home loan process requirements and they will even obtain a pre-approved home loan for you as well as find suitable home and contents insurance for your home. So, if you are a first home buyer and you are looking for a pre-approved home loan contact the firm today and their home loan experts will start working for you. For an obligation-free assessment, call on 0424 190 908 today or visit their website and simply click on the "ENQUIRE ONLINE" form.
Disclaimer: This article is of a general nature only and does not constitute professional advice. I strongly recommend that you seek your own professional legal and accounting advice in relation to your particular circumstances.
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