Bigger deposit, better position.
While some lenders can offer low deposit loans for 5% of the purchase plus costs, saving 20% can offer you big benefits.
You would gain access to a wider range of lenders and products; your borrowed amount would decrease, and the lender has a clear sign of your savings history.
If you don’t have a 20% deposit you may be required to pay Lenders Mortgage Insurance (LMI).
This adds more fees and another layer of assessment with stricter rules.
Complete Home Loans also offers guarantor loans when applicable, security support by the guarantor can save the borrower from saving the full 20% deposit.
If the home doesn’t fit.
There are more things to consider than the home loan interest rate, loans are catered to your needs depending on your current situation. Redraw, offset accounts, refinance costs, repayment flexibility, fixed or variable rate home loans are all things to consider.
Research the loan options available and ask questions accordingly.
If you don’t have finance, don’t make an offer.
Buyers without a pre-approval or approval can find themselves in serious strife if they sign a sale contract. To stay on the safe side its best to have a finance approval prior to making a bid.
If you are a first home buyer and you are ready to enter the market, keep these tips in mind.
If you would like more information, please go to our contact us tab at the top of the page.