Buying A Home

Buying a home can be one of the most exciting times of your life. Being prepared means you’ll get to enjoy the experience!
We hope these tips and suggestions on buying a home make your experience outstanding. This information is provided as a guide only; we suggest you use it as a launch-pad to your own research.
 

Research the loans available

Before choosing a loan, research the loans available.  We have access to a variety of loans from different providers including fixed and floating rates.

Calculate how much you can borrow

Before applying for a loan amount, check out how much you’ll be able to borrow. Contact Us for help on working this out.

Your deposit

The deposit you need depends on the value of the property you want to buy. You can usually get started on as little as a 5%-10% deposit. The bigger your deposit, the more money you can save – you’ll reduce the chance of having to pay mortgage insurance, your loan repayments will be lower and you’ll pay less interest.  So it makes sense to start saving now.  We can give you advice on saving for a home deposit.

Get your loan pre-approved

Whether you're buying your first home, an investment property, or even refinancing, it pays to get ahead of the game with a pre-approved loan.

With a pre-approved loan you can move fast when you find the property you’re looking for.  Loan pre-approval usually takes about 24-48 hours. Talk to us about getting your loan pre-approved.

Know your loan costs

It’s valuable to understand the different loan costs you may incur when buying a home.  We can take you through all the costs and benefits of the different loan options we offer.

Making an offer on a property

There are two things you’ll need to know about making an offer to ensure you’re getting a good deal.

  1. What the property is worth
  2. How much the seller wants to receive
 Ways of valuing a property include:

Market value  – based on what similar homes are selling for in the same area and taking into account the size of the property, its characteristics and general state of repair. 

What the vendor will accept – this is harder to find out than market value. Sometimes the real estate agent will provide some indication of how much less than the asking price the seller might take. Sellers may reveal whether their priority is price or a quick sale in the course of conversation or a guided tour. (You should remember though that the real estate agent is working on behalf of the seller - not the buyer).

You can get a good feel for the market through research. Working with the real estate agent and valuer, you should be able to come up with a fair offer that works for you and the vendor.  And you should probably consider getting a building report done too.
 

Solicitors

You can use the services of a solicitor to settle your loan, or do the legal work yourself. However, unless you're prepared to work through all the steps in detail, it's usually best to hire a solicitor who specialises in property purchase. 

Buying at auction

You should always try and go to a few auctions before actually taking part. This will help you get an idea of the sorts of prices different properties sell for, and the patterns and styles of bidding you'll likely encounter.

Preparation 

When you find a property you want to bid for at auction, you'll need to be clear about a few things before you start:
  • The value of the property
  • The maximum amount you're willing to spend 
  • The maximum loan amount you've had pre-approved.  Remember that 'subject to finance' clauses cannot be included in an auction. The binding nature of an auction means that you need to be committed before you make a bid.
  • Exactly what you're purchasing (find out what’s included in the price – fixtures, furniture, light fittings, curtains, etc.)
Before you start bidding, check what methods of payment are acceptable to the auctioneer. A bank cheque is usually preferred.  Some auctioneers may accept a personal cheque.
 
Want to know more? Contact Us today 
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