Location, Location, Location What are the local amenities that you might need? Shops Schools Public Transport Entertainment Are there any infrastructure changes or other council changes planned? How long will it take for you to commute to and from work Outside the Property Is there off-street parking? Is the building structurally sound? Consider a building inspection to ensure stability What is the condition of the external building? The paintwork, garden, roof and guttering? Is the area noisy? Consider inspecting the property at different times of the day. Are there any building restrictions? Inside the property How many bedrooms and bathrooms are there? Is there room for an expanding family? Are there any concerns about the wiring or plumbing? A building inspection will help to determine any faults Do all the windows open? Is there enough storage space? Is the Kitchen in good condition? Are all included appliances in working order?
Budget Cut back on the extras, look at the whole year of bills, not just a month. Not sure how much you spend? Have a look at your recent bank statement. Spending more than you are earning? Printing out a budget will help you to understand how you spend and where you can make some cut backs. The MoneySmart website has tools to help you budget: https://www.moneysmart.gov.au/managing-your-money/budgeting/how-to-do-a-budget Have a dedicated savings account Look for a high interest rate savings account. Automate payments on pay day into this savings account. Out of sight, out of mind. This may help you to save more quickly. Reduce your debts Credit cards and other credit facilities attract high interest rates. Credit cards including facilities such as afterpay can affect your borrowing capacity. Reducing your credit card facility to the minimum you need, or cancel the card completely, can help to increase your borrowing capacity when you buy your new home. Make use of Government Grants Stamp duty exemption and concessions on established homes, exemption for properties valued up to $600,000 and concession for properties $601,000-$750,000 First home buyer grants; buying or building a new home you may be eligible for $10,000 owner occupied property… [Read More]
Working with a finance broker like Tundra Mortgage Brokers can help you to understand what your borrowing power will be and the right loan that suits you and your lifestyle. Here are a few extra tips when you are buying your first home. Make sure you are eligible for a home loan. Talk to a finance specialist like Tundra Mortgage Brokers to find out what your borrowing power will be. That way you know what you can afford when you go looking for a house. Tundra Mortgage Brokers can work with you to obtain a pre-approval for finance, so you know exactly what you can borrow, and this will also enable you to bid at an auction. Research your home loan options. Do you want a fixed or variable interest rate? Do you want a redraw facility or offset account? Don’t know what these are? That’s ok, we can help you to understand the pros and cons of each. Reduce your debt. Your borrowing power is influenced greatly by the amount of debt that you have. If you have a credit card, consider reducing the limit to $1000 or $2000. Calculate the cost of buying a house. There are many… [Read More]
A bridging loan, also known as a relocation loan, is a home loan that can be taken out to purchase a new property while waiting to sell or settle on your current home. This means that during the bridging period, the time where you are waiting to settle on your current home, you will have the equivalent total of two loans. Bridging in a nutshell: Short term loan of 6 to 12 months Approval for bridging depends on the lender, the property type and the ability to service (pay the loan). Some lenders require you to be able to service the loan based on the peak debt. The peak debt is when you have both your loan for your current home and loan for your new home. Lenders mortgage insurance is not usually available The maximum loan to value ratio is dependent on the lender. Repayment options during the bridging time is also lender dependent. Some will have an interest only repayment during the bridging period. Eligibility for bridging loan: Outside of normal servicing and lending requirements, you will need to have A valuation performed on your existing property Contract of sale for your new property. During bridging period/peak debt: If your current… [Read More]
As a home owner, you will undoubtedly be doing everything in your power to ensure that you have the finances to cover the cost of your mortgage. What you might not know is that it’s been estimated that in Australia, ‘up to 1 million Australian households could be in danger of missing mortgage repayments by September’1 – not to mention facing strikes against their credit score. Repossessions can occur for any number of reasons; from losing a job, all the way to taking a financial hit to your income. Regardless of what can lead to them – there’s nothing quite as terrifying for a family, especially if they have small children. Decades ago, the Australian Government introduced several pieces of legislation to ensure that if a lender plans on repossessing a home; they must follow a particular set of guidelines. The Early Signs of Repossession One of the first things that a lender will do is to be open and approachable when it comes to helping a home owner. There are a number of steps that will be taken prior to repossession of your home. If they can help you to get on top of your arrears, then there may… [Read More]