If you've never bought property or applied for a home loan before, you probably have a lot of questions. How much can I afford to buy for? How much deposit do I need? What will my loan repayments be? The answers to these questions will vary depending on your own personal situation.

We have created five main questions for all first home buyers to consider which may help you to understand the process more clearly:

1. Is it the right time?

Moving house can be stressful and time-consuming, so consider whether it’s suitable right now. Will your children need to move school? Are there work obligations that could make a move challenging? If you’re planning major life changes like having a baby, you’ll need to factor these in.

2. Am I ready?

When considering your financial situation, do you have debts (like a personal loan) that you’ll need to manage? Perhaps you can consolidate these into your home loan, or pay off the credit card first. You’ll need to ensure your deposit is big enough to both purchase your new home and cover the costs of buying.

3. How much money do I need?

While the purchase price of your home will be your biggest cost, there are other expenses to pay. Some other costs include stamp duty, home owner’s insurance, legal fees and removalists.

4. Can I afford the repayments?

Determine what you can afford by taking your income and deducting regular expenses. Add home-ownership expenses, like rates, and allow for some unexpected costs. Once you understand how much you can afford, work out how much you can borrow using an affordability calculator. We have a suite of calculators that may help you on our website that you can access here. In particular, the Budget Planner may help you determine your average monthly expenses and the Loan Repayment Calculator can give you an idea on expected loan repayments.

5. Are there any grants that I can access?

The government’s First Home Owner Grant (FHOG) scheme may provide a substantial cash grant to first-home owners who meet certain criteria. Depending on which state or territory you’re in, and if you’re building your home, there may also be subsidies or tax exemptions available. Check out what your State Government is currently offering to first home buyers by clicking here.

Priority Home Loans Newcastle can assist you with searching for an appropriate home loan that will suit your needs and requirements. We will also help to explain the process and assist with your application to your chosen lender. If you are thinking of purchasing your first home, please contact us to make an appointment to see one of our MFAA accredited Finance Brokers.

Priority Home Loans Newcastle

Phone: 02 4967 5256

Email: info@phlnewcastle.com.au