When you plan to purchase a house.

Buying a home will always be one of the biggest life decisions that anyone can make. It is a complex process, not to mention nerve-racking. When you plan to purchase a house, it comes with thousands of big and small decisions along the way.

However, there is no need to panic. Vie Financial has broken down the entire experience for you, so you will find it much clearer, simpler, and easier.

Here are the things you need to expect when purchasing a new property in Australia:

  • Undergo a lifestyle check.
  • Stay financially smart.
  • Research the suburb and properties.
  • Know about your finance options.

Undergo a Lifestyle Check.

It may sound extreme but you can fulfil this step on your own. A preliminary lifestyle assessment is not the same as the ones that banks or lenders do. It is completely up to you.

Before you even decide whether or not it is time to purchase a home, you should consider your lifestyle and spending habits. This lifestyle check is not just for now, but also for the future. Think about your job and its security, along with the number of dependents you have and any other outgoings.

Do you have lifestyle habits that can affect your borrowing and repayment capacities? Your answer will help you determine if it is indeed the right time for you to own a roof over your head.

You should consider your lifestyle correctly and carefully.
You get a copy of your credit report.

Stay Financially Smart.

A home loan will be one of the biggest financial responsibilities you will ever undertake. It pays to work with an experienced finance professional who will help you figure out how much you can borrow. You may not want to look into specific lender options yet, but it is wise to consider early on in the process just what you can truly afford.

Your finances and loan will be influenced by several things, such as:

  • Existing debts, which you can check when you get a copy of your credit report
  • Deposit requirement, which will vary depending on your individual circumstances including the property itself
  • Other costs, including stamp duty, lender and conveyancing fees

It is worth considering that the deposit is not the only upfront cost you have to be prepared for. You will need to pay for:

  • Legal charges
  • Mortgage application fees
  • Settlement fees
  • Building and pest inspection costs
  • Stamp duty
  • Lenders mortgage insurance
  • Home and contents insurance
  • Valuation

Removalists can also cost you a lot of money as well. They should be included in your financial plan.

You should consider the interest rate and deposit.

Research the Suburb and Properties.

The next step is to figure out the location. It should fit in with your lifestyle, preferences, and budget. Some suburbs have more expensive homes than others. You should be ready to balance your priorities while finding a suitable area that will match your requirements.

In Tasmania, you may consider Devonport, Launceston, or Burnie. Whichever you choose, you should consider how the location affects your lifestyle. Will it suit your needs in relation to your present job, as well as future career opportunities? Will you have no issues with transport? Are there amenities that you can easily access in the area?

Research the different suburbs thoroughly. It does take a lot of time and effort but it is crucial. After all, you will live in that area, and it makes sense that you assess it properly.

You should also think about the type of property you want to purchase. There are various choices available, including a whole house or a unit. A house is more expensive, but you may prefer it if you are interested in seeing higher capital growth.

Also, consider the structural integrity of the property and its size. These two factors can affect the total cost of the house. You may get a low offer, but it may be due to existing damages in the property. Also enquire about electric, insulation, and plumbing.

Know About Your Finance Options.

Once you get to know your options, you can easily drown in the endless number of choices that you can find.

After analysing your situation and knowing how much you can borrow, the next step is to choose from the home loan types that suit your needs.

When comparing your options, you should consider the following:

  • Interest Rate: A lower rate will help you maximise your savings. However, be sure to consider other features and costs, which may add to the total amount you need to pay.
  • Fees: Keep an eye out for establishment or application fees, as well as discharge and ongoing fees. As much as possible, choose the option that has fewer fees to lower your holding mortgage costs.
  • Functions and Features: Some loans become more competitive because they have attractive features, such as allowing you to repay the loan early without penalty. A free redraw may also be available, as well as a 100% offset account. Check if your loan comes with these features and be sure they do not have a heavy effect on the total amount you need to pay.

The next step is for you to get approved of the loan. It is not always easy because the lender will do a background and credit check before you get approved. For this reason, you need a professional broker to assist you.

One of the Vie broker benefits is that you will get the home loan that is right for your property goals. You can be a first home buyer or a seasoned investor, but it is easy to make mistakes. A broker will guide you on the correct path with personalised advice. This way, you will end up with a successful investment that you can call home.

Have a Vie Financial broker assess your financial circumstances and give you sound advice. Contact us today to learn more.