Thinking about buying your first home, especially getting the funds together, can initially seem a little daunting. Breaking it down into smaller, bite sized pieces, will make the whole process seem easier and relatively pain free. To help you along your journey to home ownership, we have isolated: budgeting, research and expert advice, as three main points to consider when asking yourself “How do I get finance for my first home?”.
You NEED to get into some good budgeting habits to help you start saving. We’re not saying that you need to track every cent you spend, or forego all of the fun things in life, but being aware of exactly where you spend money is the first step to saving. Track your current spending habits so that you gain a better understanding on which areas are consuming the largest portion of your income and decide where you can cut back.
The Australian Securities and Investments Commission offer a few helpful budgeting tools, including the “TrackMySpend” App, that will assist in your initial assessment. There are heaps of great articles out there with clever suggestions that will get you saving sooner. Lifehacker Australia offers some great advice on successful budgeting and suggests that if your budget is stressing you out, you’re probably doing it wrong. So step back, relax, and save.
Research Hidden Costs
Once you have started to see some results from your budgeting and your nest egg begins to grow, it’s time to get a better understanding of exactly what kinds of costs are associated with buying your first home. The first step is deciding whether to buy an established house, or take advantage of the government First Home Owner Grant by building a new home. From there you can start researching what kind of properties would suit your family’s needs and lifestyle and begin setting some realistic savings goals.
Don’t forget to consider costs that you might not have thought of before. Things like: Lenders’ Mortgage Insurance (LMI), Loan Application Fee, government fees, utility connections and council rates. Some of these fees are applicable at the time of purchase while others are ongoing costs. It’s a great idea to have a bit of spare cash stashed aside in case of changes to your financial situation or even unexpected emergencies.
Ask the experts
Discuss your options with the finance experts at Iconic Home Loans
It’s time to talk with a financial advisor and decide on a lender that suits your requirements. It’s definitely worth booking in a free consultation with Aussie Living Homes and their expert financial advisors at Iconic Home Loans, to gain a better understanding of the final process involved in getting you into your first home.
Find out whether you qualify for your first home today at “Can I get my first home?“.