First time home buyers face some significant challenges in entering the property market, not least the basic task of saving for their deposit. We often work with our clients in the initial instance by assisting in establishing a budget and a savings plan. A great Government initiative is a website called Money Smart that includes a comprehensive budget planner. Once you have built up a sufficient deposit and we have established your borrowing capacity with a range of banks, its then up to you to decide on a property. Phase two of the process is to formally arrange your finance. The main issue with arranging your finances is to identify the right home loan with the required flexibility and most attractive interest rates. The features that would most likely assist you could include the basic repayments options, namely interest only or principal and interest (P&I), but could also include features such as flexible repayments, the capacity for additional repayments, Repayment redraw facilities, repayment holiday’s and mortgage offset accounts.
Owning your first home is an incredibly exciting but daunting time in your life. Before you embark on the process here are some of the key issues to consider:
Download this handy guide that the team at Intuitive Finance has put together for you.