Buying Your First Home 101
Where do I start?
For most of us, buying a home will be the biggest purchase we EVER make. And knowing where the heck to even start can be incredibly overwhelming.
This is where we come in. Think of us like your incredibly helpful older sister who’s already been there and bought that. We’re here to make the process of buying your first home a pleasure (rather than a terrifying ordeal!!).
Step 1: Figure out how much you can borrow
Your income vs expenses (yep, add up all those coffees!) will determine how much you can borrow to buy a property. It’s important to get an idea of your borrowing power ASAP, so you don’t waste time daydreaming about properties that are way out of your price range.
Check out our online calculator to get a rough idea of your borrowing power. Or, if you prefer the human touch, hit up one of our Loan Officers* for some free advice!
Step 2: The small print
Don’t forget about all the other expenses associated with buying a home. Make sure your budget includes things like stamp duty and building and pest inspections.
And if it’s your first home, check out if you’re eligible for the First Home Owner Grant or the First Home Loan Deposit Scheme.
Other things to consider at this stage are whether you will be required to take out Mortgage Lenders' Insurance or have someone guarantee your loan. These are all considerations that can dramatically affect your final budget!
Your friendly neighbourhood Loan Officer* can talk you through all of these options!
Step 3: Research the market
Believe it or not, this is actually the fun part! They say no-one knows as much about a neighbourhood as someone considering buying a house there, so dig deep!
Check out sold listings on realestate.com.au or domain.com.au to get a realistic idea of what properties are selling for. Go to open houses even if you’re not that keen on the property. Attend auctions and scope out the competition. The more you know, the better equipped you are to make one of the biggest decisions of your life!
Step 4: Create your budget
No matter whether your dream house is a studio apartment or a sprawling acreage, you’re going to need a solid budget to figure out how you’re going to do it!
Have you already saved a deposit? Or do you need to start saving now? How are you going to afford your mortgage repayments? Have you considered what will happen if interest rates go up?
Your mortgage repayments should be able to easily fit into a 50-30-20 style budget, with a little breathing space in case of interest rates rise. If you haven’t yet, make sure to check out our blog on the 50-30-20 Budget.
Step 5: Consider your home loan options
Many of the big banks are having long turnaround times on applications at the moment, which means that local people are missing out on their dream homes because they can’t get approvals through on time or meet financial settlement dates. But we can!!
Also, because we have local people on the ground, you can literally walk in and speak to our staff – not wait in a queue or spend hours listening to hold music before being transferred to an off-shore call centre.
Step 6: Find your dream home!
Once all your ducks are in a row, it’s time to really step up your house hunt (and we don’t mean bingeing the 9Life version)!
Make sure you look at a broad range of properties to get a feel for exactly what you’re looking for and why. Try not to get TOO emotionally attached, it can be heartbreaking when you miss out on a property you’ve fallen in love with. But also – don’t take emotion out of it altogether. Ask yourself the question… “If I’m not emotionally attached at all, is this worth spending my life’s savings on?”
* Loan Officer: a person who solves problems that you never knew existed, in ways that blow your mind. See also: legend, hero
Capricornian Credit Union, 2021 (Brand Archetype: Neighbour/Friend/Trusted Advisor)