Buying a home is an intimidating process, especially if you haven’t done it before. People don’t know how to interact with lenders, end by making the wrong choices that have long-termimpact. At Home Loan Comparison Co, we have worked with several first home buyers and are fully aware of their concerns. This guide concisely explains everything you need to know:
What Do You Need?
Before you start looking for a home loan, consider your financial situation carefully. You need to have a steady income and some savings. It is also important to save for a deposit because if you pay 20%, you can avoid Lender’s Mortgage Insurance.
You can also ask your parents or older siblings to act as a guarantor for the property. They can guarantee a certain portion of the loan with their own property, which will make lenders more confident and make the application process easier. Getting assistance from your parents might be risky, but it can help you get the best loan offer possible.
First Home Owner Policies
The government offers several concessions and grants to first homeowners. They want to encourage people to invest in property and have homes. The government provides stamp duty concessions so you save money on the fees. They also provide financial grants to provide assistance to first home buyers who are a little short on money.
It is a good idea to check with your local government and find solutions that work. You can also consult with an experienced mortgage broker in Melbourne to find special loan options and concessions that will make the burden easier.
What Should You Look at For a Loan?
You need to compare several factors while looking for the ideal loan option with us at Home Loan Comparison Co. These criteria include:
- Interest rate – Compare the interest rate of all loans available and highlight loans with the lowest rates. It is also a goodidea to highlight loans with interest rates you’re willing to pay even if they’re slightly higher.
- Deposit –If you don’t have 20% deposit saved, look for no deposit or low deposit loans. We recommend paying at least 5% deposit as that will let you get better rates.
- Repayments –Make sure every repayment cuts into both the interest and principal. Some lenders will take care of accumulated interest first and then cut principal, which is more expensive in the long run.
If you want to know more, don’t hesitate to contact us at Home Loan Comparison Co on 0419 856 669.