5 suggestions for first home buyers applying for a mortgage www.ospreymortgagelending.com
1. Comprehend what you can borrow The most straightforward method is to use a mortgage calculator. While a mortgage calculator isn’t exact, it will deliver a proper assessment of how much a lender will let you borrow and therefore what your budget is when it comes to buying. You should also take time to make sure you know the criteria lenders will take into account when considering your loan application, such as your recognition history and ability to service a loan.
2. Hold what you can to lessen your mortgage Take advantage of first home buyer subsidies and payments The good news for first homeowners around most of Australia is that the government provides incentives for getting into your first home. These include stamp duty exemptions or concessions and, in many States and Territories, a first homeowners grant. These benefits tend to be especially generous if you’re buying a brand new home under a certain value and can make it a lot easier to get into your first home.
3. Get pre-approved Once you’ve worked out what you want to buy and have an idea of how much to borrow, it’s time to get conditional approval. This isn’t a firm offer of finance but a statement that you should be able to borrow up to a certain amount, so long as you can supply information to support the figures you’ve based your application on – such as salary, savings, assets and expenses – and the value of the home you’re purchasing is verified by a professional valuer. Conditional approval usually lasts for 90 days and can give you some certainty in your property search. If you use a mortgage broker they’ll generally apply for conditional approval on your behalf.
4. Think acquiring for insurance or getting help Most lenders understand that saving for your first home is not an easy task. That means they won’t always require you to have a 20% deposit before you borrow. Instead, you can often obtain a home loan with as little as 5% of the purchase price, so long as you also take out lenders’ mortgage insurance (LMI). That said, LMI adds to the cost of your monthly repayments and may affect how much you can borrow. So, if you have a family member willing to help out, another alternative may be to use a guarantor on your loan. Many lenders now have a partial guarantee, where a family member can provide equity to cover your loan only up to the amount where you no longer need to take out mortgage insurance. This can make getting a home loan both easier and cheaper for first homeowners.
5. Take benefit of first home buyer subsidies and payments The good news for first home owners around most of Australia is that the government provides incentives towards getting into your first home. These include stamp duty exemptions or concessions and, in many States and Territories, a first home owners grant.These benefits tend to be especially generous if you’re buying a brand new home under a certain value and can make it a lot easier to get into your first home.
Information Source www.ospreymortgagelending.com