View our range of First Home Buyers videos curated by our expert team of Newcastle, Maitland & Hunter Valley home loan specialists.
10 Open Inspection Tips for Home Buyers
Some tips to help you see past the cosmetics and helps you determine the right price to pay for a home of your dreams:
Do some research beforehand
Look past the staging tactics
Look past the staging tactics
Beware of the overuse of smellies
Check the plumbing
Look out for unwanted guests
Be wary of cracks
Consider the orientation
Do your due diligence
How Mortgage Brokers Help You
How Mortgage Brokers Help You
We determine your borrowing capacity
We search the loan market for the most suitable finance products for your needs
Save you time and money
Answer all of your questions
We submit a qualified application the first time
Understanding Home Loan Costs
The actual costs involved with taking out a home loan will depend on the kind of loan you need and the lender you choose. Fees and charges can vary widely from lender to lender. Here are a few fees to consider.
Loan application fee
Early exit fee
Lenders mortgage insurance (LMI)
Choosing The Right Loan For You
To find a loan that suits your needs and financial situation, it’s important to understand the differences between the loan products available.
Variable Rate – means your repayments go up and down as interest rates change
Fixed Rate – gives you the certainty of knowing what your repayments will be with an interest rate that stays the same for a set period
Interest Only – is a loan where you pay only the interest for some or all of the term, with the principle balance remaining unchanged during the interest only period.
Principle & Interest Loan – repayments on principle and interest loans are higher because you’re simultaneously paying interest and paying off the original loan balance.
Step-by-Step Guide To Owning Your Home
Here are the steps to owning your home:
Step 1 – Get loan pre-approval
Step 2 – Choosing a home to buy
Step 3 – Make an offer
Step 4 – Offer accepted
Step 5 – Final loan approval
Step 6 – Insurance
Step 7 – Final inspection
Step 8 – Settle your loan
Step 9 – Get the keys
Home Loan Features
Looking for greater flexibility with your finances. These two home loan features might be of interest to you.
Offset Account – An offset account is a transaction account linked to your home loan account. Money in your offset account helps reduce the interest you pay.
Redraw Facility – A redraw facility means you can put all your ‘rainy day’ money in your mortgage, knowing you can get it out again if you have to. A redraw facility allows you to make extra payments and then withdraw them if you need them.
Asking The Right Questions
Before you meet with your mortgage broker for the first time, you should think about what questions you need to ask.
Having your questions answered professionally will help you feel comfortable and confident in your broker.
Potential questions you may ask:
Do I earn enough money to afford a home loan?
What loan will suit my lifestyle and needs?
Will a lender give me pre-approval on a loan?
How much deposit do I need for the type of home I want to buy?
How to Buy A Property: Private Sales Vs. Auctions
Private sales are usually handled by real estate agents. The vendor is the person, or persons, selling their home. A vendor will set a price for a property before negotiating with potential buyers via the real estate agent.
Auctions are open to the public and are held on a specific date. Vendors will set what is known as a reserve price. This is the minimum amount they will sell a property for. Once a property exceeds its reserve price, the highest bidder effectively commits to buying the property.
Loan Types Explained
Choosing the right loan makes your money work harder for you. However, deciding which loan is right for you can be overwhelming and confusing, due to the wide variety of home loans available—all with different interest rates and features.
Basic home loan – excellent option if you’re looking for a simple loan.
Standard variable rate loans – have more features than a basic home loan including the benefit of an offset account and/or redraw facilities.
Introductory rate home loan – suitable if you’re looking to minimise your initial home loan repayments. Offers a reduced interest rate and lower repayments for a set time.
Fixed rate home loan – allows you to lock into an interest rate for a period which can be anywhere from 1 to 7 years.
Split loan – offers you the option of having part of your loan fixed and part variable.
Four Reasons To Choose A Mortgage Broker Over A Bank
Why choose a Mortgage Broker over a Bank?
Brokers assist you during the entire mortgage application process.
We protect your interests and help to reduce the incidence of declined loan applications.
Brokers are not aligned to any one particular bank.
Brokers are well practiced in finding the right loan products and most competitive rates. We know lenders’ credit policies and are able to direct you to lenders most suited to your circumstances.
A loan pre-approval provides you with proof that a lender considers you eligible to borrow a certain amount. With pre-approval you can bid and negotiate with confidence.
Documents you’ll need for pre-approval:
Evidence of your deposit, which ideally should be at least 10% of what you want to borrow
A budget showing your regular expenditure. This is called your living expenses assessment and must be very accurate. We’ll work with you to put this together for the lender
Evidence of your savings history
Last 2 payslips for each person and last group certificates
Statements for all debts
What’s The Difference Between A Bank and A Mortgage Broker
Not sure what the difference is between a Bank & a Mortgage Broker?
A bank only has access to their own loan products and interest rates.
Mortgage brokers have access to a wide variety of lenders with competitive rates—including the “Big 4” Australian banks, second tier lenders, and credit unions.
With a mortgage broker you get personalised, ongoing service from someone you know and trust. We’re here to help you for the long term.
Tips For Repaying Your Mortgage Sooner
Tips on how you can pay off your home loan earlier and take the next steps to becoming a property investor.
Make extra repayments
Utilise a mortgage offset account
Make an annual lump sum payment
Opt for a redraw facility
Looking To Purchase? Key Questions To Ask A Real Estate Agent
When viewing a property, you should not be afraid to ask the real estate agent questions. Here are some important questions that you might consider asking.
If the property is a house:
Is it insulated?
Are there any planned construction works in neighbouring lots?
What are council rates like?
Does the property have any special restrictions?
Are there potential zoning changes in the future?
If the property is a unit or apartment:
Are pets allowed in common areas?
What are the strata fees?
Are barbecues or other outdoor events allowed at the property?
Is there car parking at the building?
Purchasing A Property? Understanding The Costs Involved
Purchasing a property comes with a lot of additional expenses. It’s important you keep a detailed and accurate account of everything you spend. Here we’ll outline all the associated expenses that you can expect to incur when buying a property.
Loan application fee
Building and pest inspections
Do Your Research
Things to consider when looking at potential areas to purchase in:
Will the area suit my lifestyle in five years time?
Proximity to public transport, local schools and shops
Construction in the area
Access to local parks, bike tracks and community facilities
NBN internet and phone coverage.
Driving or walking around your chosen area will also give you a feel of the suburb and help find streets that are more appealing. It’s also invaluable to keep track of prices on recently sold comparable homes in the suburb.
What Deposit Will I Need
Most lenders require at least 10% deposit, plus a history of savings. In some cases, you might be able to use the government first home buyer’s grant to put towards your deposit.
When you’re thinking about your deposit, think of it this way: The bigger your deposit is—the less you’ll have to borrow—the lower your repayments will be.
Other ways of building your deposit:
What A Mortgage Broker Can Do
As your professional mortgage broker we’re here to make sure you know everything you need to know.
We help you determine your borrowing capacity so you know what property you can afford to buy.
We search for the most suitable finance product that meets your specific needs.
We then assist you with your loan application process.
As your mortgage broker, we’ll support you along your buying journey, from pre-approval, right up to settlement and beyond. We’ll be there to answer your questions and do the leg work for you, so you can enjoy the excitement of the home buying process—without the added stress.
Your Home Buying Journey
Owning your home is one of the most exciting things that you will experience in your lifetime. Make sure you enjoy the process by taking the time to understand all the steps first.
Step 1 – Planning
Step 2 – Finding
Step 3 – Pre-Approval
Step 4 – Settlement
Step 5 – Getting the keys!
Getting Ready For A Loan
If you’re thinking about getting a home loan, there’s a couple of things you can do to get yourself started.
Open up a separate bank account to the rest of your accounts, this way the bank has a clear picture of how you’ve been saving for a home loan.
Show genuine savings
Show good conduct on current accounts
Good payment history on current debts
Family Equity & Parental Support is generally used to help first home buyers looking to get into the property market.
Parents are able to assist children saving for their first home, using their property as part security for the 20% deposit and the balance is secured against the house that their child is buying.
Lenders Mortgage Insurance
Lenders Mortgage Insurance is a product that protects the bank should you default on your loan. Lenders mortgage is required if you don’t have a 20% deposit. In most cases this can be added to the loan so its not an added expense.
If the bank is required to sell your property and does suffer a loss, that loss is covered for them by the mortgage insurer.
Basic Products vs. Professional Packages
Basic Products vs. Professional Packages
Basic Product – Base Variable loan product, application fee, monthly service fee, no offset feature, redraw available usually at a fee
Professional Package – Variable, Fixed, Line of Credit & Split Loan products available, annual package fee, bank account with offset feature, redraw available usually fee free
5 Common Mistakes Of First Home Buyers
Getting ready to buy your first home? As your mortgage broker, we’re here to help you every step of the way. It’s an exciting time and it’s easy to make mistakes. Here are 5 common mistakes that you should try to avoid!
1. Relying on advice from family and friends
2. Blowing the budget
3. Underestimating the costs involved
4. Getting the wrong mortgage
5. Being blindsided by emotion
With careful planning and support, buying your first home will be a positive experience. As your mortgage broker, I’ll help you every step of the way and can refer you to other professionals whom you can rely on. Please call us on 02 4934 8558 – let’s make your home ownership dream a reality!
6 Negotiation Tactics For Property Buyers
Nobody wants to pay more than the current market value for a home. Here are six negotiation tactics to help you get the right price on your Spring property purchase.
1. Research the market value in advance
2. Know your ceiling price
3. Be confident of your finances
4. Understand the seller’s motivations
5. Use your building and pest inspection report as a negotiation tool
6. Know when to walk away
There’s an art to successfully negotiating the purchase of a property. However, with careful research and preparation, you can come out on top. Before you begin shopping for a home or investment property, remember to talk to your mortgage broker about getting your finance pre-approved so you’ll be all set to negotiate with confidence.
Happy property hunting!
How to Compare Home Loans and Features
Basic guide for making home loan comparisons and features