The most important part of buying your first home isn’t actually what property you want to buy or where you want to live – it’s securing your first home buyer home loan. Because if you don’t have finance in place, you won’t be able to enter the market.
That’s why your first step should be to search for the best mortgage advisor to discuss a first home buyer loan.
Provide an overview of the entire first home buyer home loan process
Take the time to understand your personal goals and financial position
Discuss where, what and when you might like to buy
Explain what government housing incentives might be available
Provide an estimate of your home loan borrowing power
Talk you through the different first home buyer home loan options
When you discuss home loans with your mortgage broker, one of the things you’ll need to decide is what kind of interest rate you’d like. There are three options:
A variable rate is one the lender can increase or decrease at any time. One advantage of variable rate loans is that, over the long-term, they tend to have a lower average interest rate than a fixed rate home loan. Also, if your lender reduces their interest rates, you’ll benefit from a rate cut. One disadvantage, though, is that if your lender increases their rates, your repayments will increase. Also, because your lender could change your rates at any time, it’s harder to budget.
This is when your interest rate is locked in place for an agreed period of time – usually anywhere from one to five years. The big advantage of fixed interest rate home loans is your repayments can’t change during the fixed period, which makes it easy to budget. Also, if your lender increases their rates, you won’t have to pay a cent more during the fixed period. However, if your lender decreases their rates, you won’t benefit. Another disadvantage is that, over the long-term, fixed rate home loans tend to have higher average interest rates than variable rate loans.
If you’re unsure what type of first home buyer loan interest rate you’d prefer, your mortgage broker can explain the pros and cons of each option.
You might have heard of federal and state / territory governments offering incentives for first home buyers. These may consist of:
These housing incentives can be some of the best mortgage deals around, because they can make it easier for you to qualify for a first home buyer loan and therefore enter the market sooner.
Unfortunately, though, these first home buyer incentives are not set in stone – schemes are regularly introduced, changed and removed.
Breakthru Home Loans, which aims to be one of the best mortgage advisors in Australia, can explain what first home buyer incentives are currently in place and how you might be able to capitalise on them.
Buying your first home can be an overwhelming experience. Breakthru Home Loans is the kind of mortgage broker who will hold your hand through the entire process.
We’ll explain your options to you in plain English, compare first home buyer home loans for you and manage the entire application process for you.
Our goal is to help you get on the property ladder with the least stress possible.
If it turns out you’re unable to qualify for a first home buyer loan right now, we’ll explain why and how to fix the problem. It might be a question of reducing your expenses, improving your credit score or changing your employment situation – whatever the reason, we’ll let you know. That way, you’ll know exactly what steps you need to take to buy your first home.