Entering the property market is an exciting time and considering different home options means you’ve already taken the first step towards your home buying journey. Buying a new home comes with lots of excitement, but also some confusion can linger as you navigate all the official steps required to take final possession. With all the information out there, it can be confusing to know where to start, what to look out for and who to trust.
We’re here to make this process as easy and seamless as possible, so to that end, we’ve put together our top tips for when you’re buying your first home, providing some direction and offering useful information you can take with you on this next chapter of your life.
Saving for a deposit This is one of the most important considerations when taking the first steps on your home buying journey. You would have (hopefully) mapped out your budget and looked at homes within your price range – and the next thing is to start saving for your deposit. Whether you’ve been saving for years, or you have no money put aside, there are a few options to help you reach your goal.
Here are some deposit options:
Low Deposit Home Loans: Most lenders require a minimum of 5% genuine savings, and you must have the 5% deposit amount in your bank account for a designated period of time.
Keystart Home Loans: For those who live in Western Australia and don’t have their 5% deposit saved, a Keystart Home Loan can be a fantastic option. If you’re eligible, you can secure a Keystart Home Loan with just 2% deposit, of which 1% must be genuine savings.
Guarantor Home Loan: This is when a person (perhaps a parent or relative) who provides additional security for your home loan. They don’t need to provide any cash payment but lenders do prefer the guarantor to be a close relative, usually a parent, sibling or grandparent.
Choosing the right home loan
There are many different home loan types available, so you should choose one which is best suited to your lifestyle.
Here are a few to consider:
- Fixed rate home loans: you pay the same interest rate for a certain number of years, and it does not vary according to whether the interest rate rises or falls.
- Variable rate home loans: the interest rate goes up and down depending on the Reserve Bank’s official interest rate.
- There are also interest-only home loans, low-doc home loans and guarantor home loans – all of which have specific criteria and varying interest rate and payment structures.
Check if you’re eligible for any grants
First home buyers may be able to receive a grant towards the purchase of a new home. The First Home Owner Grant is a one-off payment to encourage and assist first home buyersto buy or build a new residential property for use as their principal place of residence. There are some criteria which needs to be met to be eligible. You can find the full list here:https://www.wa.gov.au/organisation/department-of-finance/fhog
Consider additional expenses
There are additional expenses to include in your budget and these in addition to your deposit these include repayments and moving expenses. However there are some things to keep in mind when making a big financial decision and we recommend doing some research around additional expenses like stamp duty, rates, bills and maintenance. It all adds up and may impact how much you have available for other things like décor and garden design.
Consider what you want from your new home
As this is your first home, this is an important question to keep in mind when taking this next step. It’s key to consider what type of home you would like to move into, and if it’s one which reflects your lifestyle. Whether it’s a home you want to live in for the next 10 years or an investment property which you’ll perhaps rent out, keep in mind what’s important to you. This includes location, suburb value, noise, parking, privacy and future developments in the area.
While you start this property journey, why not make Claravale your first place to call home? Located in a thriving suburb of Hilbert, nothing is too far to live a seamless life. View our current lots below…they’re selling fast!
