Finance Tips for Your New Home
Unless you’re a multi-millionaire that can buy any number of properties outright, the chances are that you’ll be planning on following the same path as thousands of mortgage applicants every year. There’s no harm in applying for a mortgage, in fact over 75% of all new home purchases in Australia are undertaken by first time buyers.
But that’s not to say that everyone will be in the same financial position. Some might be applying as a couple with a large annual income, while others may be applying alone on a low to moderate income. It won’t matter what you make each year – just as long as your bank can see that you will be able to keep up with your repayments.
In any event, we have no doubt that you will be keen to save as much money as possible when it comes to taking out a home loan. If you’re after finance tips for your new home, then look no further – we are here to help. Put the kettle on, sit back and take a look at the priceless information and advice that our experts have prepared for you below!
- How does your credit score look?
- How could you find the best deal on a mortgage?
- What home loan options are available to you?
- How much information will you need to provide?
- How much can you afford?
These five things are some of the most important that you’ll need to ask yourself and fortunately, we’ve tailored this article to help you with every single aspect of them.
So, how does your credit score look?
There are plenty of ways to find out about your credit score. You could apply online to a credit history checker for a fee (or find a free one). You could also get in touch with a third party and have them take care of this investigation for you.
Next up we have the important factor of finding the best deal on a mortgage. Did you know that you could hire a mortgage broker to take care of this task for you? They’ll take care of the comparisons and present you with the best solutions, so it might be worth your time to get in touch with one.
If you’d like to learn which home loans are available to you, then you can manually check by visiting a bank’s website, or getting in touch with them directly – but personally we find that a good mortgage broker can do all of this for you, and in a fraction of the time when compared to your own efforts.
As far as the information that you need to give to a bank is concerned, most will ask for data relating to what you make each year, your expenses and your personal spending habits – simply to work out if you could afford to meet your repayments.
And this brings us on to our last point – understanding how much you can afford to borrow. It won’t make much sense to borrow a huge amount if it means that you and your family will go without food. Instead, work out what you can borrow by considering your yearly income and then multiplying it by 3.5. Most banks will offer 3.5, but some will offer 2.5 times instead – and others might overlook these limitations entirely.