Essential Guide for First-Time Home Buyers: Tips & Basics Presented by Uniko Capital
Determining the Right Borrowing Amount:
As a first-time home buyer, it can be difficult to understand how to secure your initial home loan. Luckily, our loan calculator is an excellent starting point. Using this tool, you can get an idea of the approximate amount you can borrow and estimate your repayment obligations. Factors like your income, expenses, deposit amount, family size and the type of property you want to buy can affect the loan amount.
Valuable Advice Before Securing Your First Home Loan: If you are not ready for your first home loan, we can provide valuable tips and strategies.
Understanding the Required Deposit Amount:
The deposit amount required depends on a number of factors including the type of property, the value and your financial situation. Most lenders require a minimum deposit of 20% to avoid the need for lender’s mortgage insurance (LMI), which protects the lender in case of payment default. However, if you are prepared to pay the LMI, a deposit of 5% to 10% may be sufficient. Having a guarantor can also reduce the amount of deposit required.
Understanding the costs associated with buying a home:
When buying a home, the price of the property represents just one aspect of the total cost. Additional expenses include insurance, legal and conveyance fees, LMI, mortgage or loan application fees, pest and building inspection reports, level searches (for apartments), stamp duty and utility connections. These costs vary by state and region, and depend on the service providers you employ. In addition, the charges are influenced by the desired location, property type, home loan product selected and deposit amount. To narrow down your property search, you can use the Australian Suburb Spotter Map, which provides estimates of the deposit required for specific areas. Apart from this, you can contact us for more information related to these.
We hope that these tips and basics have given you a clear understanding of the home buying process. Remember, we are here to support you every step of the way.