With interest rates at a record low, owning your first home has never been easier. The banks are changing the rules around lending, while the government is updating policies to make first home ownership more achievable. So, here are a few things you need to know about how to become a first home owner.
When it comes to home loans, there is a big difference between what you think you can afford and what you can get approval for. That’s why it’s important to get a better understanding of how much you earn and how much you spend.
Think about your income and factor in these types of expenses:
Transport to and from work
Gym / personal trainer / sport commitments
Nights out / dinners
Credit card and the interest paid
Rent and utilities
Get your priorities straight
We all dream about the kind of lifestyle we want, but it’s not usually the same as the one we’re living. Make sure you’re clear on what is most important to you, so we can help you work out what type of home that will work with your budget, keeping in mind that your first home starts you on the path to owning your dream home.
It’s important to prioritise your needs. Do you want to be closer to town? Do you need easy access to public transport? Do you need space for a study or gym? Do you want your own bathroom? Is a backyard important? Do you have any pets? Is your family growing?
Rank your top 3 priorities in order, so we can help you choose the right property for your current financial status.
Sort out your paperwork
Call Start Point today and kickstart your journey towards home ownership. On your first call, we’ll tell you what information we need to help you get into your first home.
Proof of Identification
Lenders typically require what is called 100 points of identification. Each document below is worth different points. You need to present documents to lenders that add up to 100 points.
Current Passport: 70 points
Birth certificate: 70 points
Citizenship certificate: 70 points
Driver's License or permit: 40 points
Proof of Income
Being able to show all your sources of income is vital to reviewing your situation. Whether it’s long term stable income or fluctuating income as your work opportunities change, it’s important to have the documents below:
Pay slips/invoices for at least three months
Tax returns that are for the period within the last 18 months.
Proof of Savings
It's important to have proof of savings available.
Proof of Current Debts
Lenders take pre-existing debt into consideration when reviewing the type of home loan that best suits you. Credit cards, store cards, car loans and other loans all contribute towards your current situation.
Proof of Assets
Make sure you have created a list of any assets you own. Cars, contents & shares are all considered assets.
Talk to a professional
Your Start Point consultant will help you through the first steps to get you into your first home. They'll take you through the different homes best suited to you & your needs.
What changes when you’re a home owner
Saying goodbye to landlords and moving out of your parents’ home means more freedom. As a home owner you can renovate, create new spaces, even refurbish, and make your home truly yours. You might even end up paying less for your mortgage than you were in rent.
But owning your own home also comes with different responsibilities. You have new bills to pay and council rates due. So, it’s important that you’re ready to manage these and plan ahead. However, the investments you make in your new home will reap rewards. Your Start Point Home Ownership Expert will outline all the great things that can happen once you become a home owner.
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