67% of Australians see the benefit of owning their own home.  This calculates to around 5.4 million households with a smart homeowner.

Deciding to buy your own home can be a daunting step into adulthood and can seem like a minefield for many. Yet, there is so much to know, from prime lending rates to appraisals and inspections. How do you navigate it all?

If you’re a first-time homebuyer feeling overwhelmed by it all, keep reading while we explain along the way.

Types of Home Loans

Unless you’re fortunate enough, you’re probably unable to afford your home outright with cash. So, let’s explore the three most common types of home loans you can get in Australia:

Variable-Rate Home Loans

With this loan, your repayment cost fluctuates according to market conditions. Therefore, if this decreases, your premiums will come down accordingly, too.

Fixed-Rate Home Loans

Interest rates are set at a predetermined amount for a defined period (between 1 and 5 years). After which, the borrower can choose to remain with another fixed term or switch to a variable-rate loan instead.

Interest-Only Home Loans

The first five years of repayments are comprised of interest and fees. After this term, the loan transforms into a traditional principle and interest repayment program.

Once you’ve decided on the type of loan to get, you can move on to the next step of finding your dream home.

First-Time Homebuyer: Home Buying Checklist

When buying a house, contracts are drawn to protect both the lender and the borrower, but this means there’s a lot more paperwork and effort you need to put in. Nevertheless, these are the steps you need to take to own your first home.

Be a Smart Homeowner

Buying is not for everyone, and you should only consider it if it provides you with long-term advantages. Assess your motivation for purchasing a home before you begin.

Calculate Your Budget

Knowing what you can afford won’t leave you battling to pay the mortgage. Make a budget, stick to it, and don’t let anyone bully you into spending more than you are comfortable spending.

Find the Right Home Loan

Using quality mortgage brokers like https://mynewbridge.com.au/ can make all the difference in your terms and conditions that can affect the duration and interest rate of your loan. Ultimately, consulting an expert can save you lots of money.

Find and Research Some Houses

Once you’ve found several types of homes you’re interested in, research their location. Take the time to visit the neighborhoods at various times during the day.

Hire Professional Inspectors

This is a crucial step so you don’t purchase a property with structural or safety matters you may have overlooked. These types of issues will cost you money down the line.

Do a Title Search

Get the all-clear to put down an offer by doing a title search, bringing up any issues that will delay your purchase and giving a property ownership history.

Negotiate an Offer

Remember to stick to your budget. Don’t be afraid to discuss price negotiations with your realtor, and don’t be pressured to spend more than you can afford.

Gather and Ready All Documentation

Several documents are needed to proceed with a home purchase. Your realtor will assist you with sorting out the paperwork required.

Make the Right Decisions with Your First Home Purchase

When you’re a first-time homebuyer, make time to understand everything about purchasing a home. Making an effort to do this can save you thousands of dollars long-term. It’s essential to calculate and stick to a budget within your means so you don’t overburden yourself with a mortgage you’ll battle to repay.

If you’ve enjoyed this article, have a look at others just like it in our Home Buyers section.