Reasons for Applying for First Time Buyer Home Loans
Entering the property market for the first time is an exciting moment in you’re life. It can also be a worrying time; the competitive and unaffordable nature of the Australian property market can be a scary prospect for first time buyers. The Demographia International Housing Affordability Survey ranks Australia second only to Hong Kong in the world’s most unaffordable housing market. Money Choices’ comparing service brings together the best first time buyer loans to make buying your new home as pain-free as possible. By choosing the right loan to meet your needs you can make the process simple and affordable, save money and enjoy life in your new home. Whether you’re a hard worker wanting to gain your first property, or a young family looking for a house with space for your children, our comparing service will help you find the best deal, save money and secure your new home.
First Time Buyer Home Loans Features and Benefits
When applying for a first time buyer home loan you should take into consideration what type of loan will fit in with your lifestyle and financial circumstances. Having worked out how much you want to borrow there are several aspects of home loans you should examine when comparing which type of loan is best for you.
A standard variable rate loan is flexible with interest on your payments adjusting in line with the rate set by the Reserve Bank of Australia, so you need to be prepared to make bigger or smaller payments accordingly. A fixed rate loan means the amount you repay is constant and secure for an agreed period of time. Some loans offer an introductory promotion of low rates for the opening period of the loan, but you should be aware of what the rate changes to when the promotion expires.
First Time Buyer Home Loans Suitability
The type of home loan suitable for you depends on your financial situation, your lifestyle and your ambitions. Before applying you should workout what you can afford and make sure you are prepared to buy for first house.
You should take a look at your monthly income and outgoings to see how much you can afford to pay, and lenders will calculate your loan according to your ability to repay it. Generally, repayments should not exceed one third of your pre-tax income.
It will be necessary for you to provide a deposit on the loan. Most Australian lenders ask for a minimum deposit of 5% of the total house price, but you should try to provide more, ideally 10% to 20%. The bigger your deposit the quicker you will be able to repay what you borrow, potentially saving $1,000s over the course of your loan. Elsewhere on our site we compare high interest savings accounts and term deposits, both great ways of putting aside money towards your deposit.
Once you have worked out how much you can afford to borrow and how much deposit you can provide, you can take a look at different types of loan to work out which fits in with your financial lifestyle. And when you have found the house you want to make your home you can use our free comparing service to find and apply for the perfect first home loan.
Start Online: Apply Today
Money Choices’ free comparing service takes the headache out of finding the best first time buyer home loan deals from leading Australian lenders. Having compared the best loans you can apply today free of charge, no risks and no commitment, speak to a trusted mobile banker and decide if what’s on offer suits your financial requirements. The sooner you set up your loan the sooner you can move into your first home, start saving money and planning for the future.
