Taking the stress out of your first home loan

May 22, 2011

Use these handy tips to take the legwork out of owning your first home

Get help
Look for a lender who can come to you if you’re too busy to get to a loan appointment during business hours. They can help you fast track your way through the application. Also, ask them if they are able to lodge your First Home Owner Grant application on your behalf.

Get tailored
Many lenders have loan packages specifically tailored for first timers, but make sure you ask what features and fees are included. Would you be better off with a loan package that entitles you to a discount over the life of your loan?

Use online calculators every step of the way

• Saving your deposit: using online budget and personal finance calculators can help you get where you want to be faster. They can also give you a clear picture of how long it will take to save the money.

• Where can I afford to buy: Can you afford an apartment in the city or a three-bedroom with a pool in the suburbs? These handy online tools will help you figure it out by calculating the median prices of suburbs against your borrowing power.

• Borrowing power: Work out how much you can borrow factoring in all income, expenditure and your credit history. There are also home loan calculators that will work out what your repayments will be for any given loan amount.

• Home loan comparison: Trying to decide if you should opt for fixed, variable rate or split loan can be a minefield. Home loan comparison sites will pit loan against loan to show you exactly who’s offering the best deal.

Related mortgage links

• Low Doc Home loans
• Low Interest Mortgage
• Home loan spotlight: home equity loans
• Borrowers to benefit in home loan market slump
• What do comparison rates really mean?

Compare home loans in Australia