Your Compete Property Buying Guide 4 Howmuch deposit do you really need to buy your home? Most lenders require you to have a 20%deposit for your home loan. For example, if you’d like to purchase a home worth $500,000, you will require a $100,000 deposit. However, some lenders will allow you borrow up to 90%of the property value. If you don’t have a 20%deposit and need to borrow more than 80%, it’s a good idea to speak to a mortgage adviser who can talk you through your options. At Harcourts, we can help simplify the buying process by providing you with a complete service, from sorting out your finances to arranging your home, contents and personal risk insurance. Our partner, Mortgage Express, offers a full range of financial and insurance products and services. For more information please talk to your local Harcourts sales consultant about Mortgage Express or visit www.mortgage-express.com.au. Budget Create a budget to determine what you can realistically afford to spend onmortgage repayments. Your budget should include all your regular outgoing expenses along with estimates for the cost of ownership of a home (insurance, rates, interest on your mortgage, applicable body corporate charges andmaintenance for your home). These costs will vary depending on where you live and the type of home you’d like to buy. SORTINGOUT YOURFINANCES Mortgage calculator Once you’ve worked out your budget, you can use a home loan repayment calculator to get an idea of what your mortgage repayments would be. The website www.mortgage-express.com.au has some useful tools you can use. It’s probably a higher figure than you are used to paying in rent, but the benefit is that instead of being an expense, your mortgage repayment is paying off an investment. If you’re happy that you can afford to pay this amount eachmonth, then you can start looking at financing. Pre-approved finance Approach lenders to get written finance pre-approval so that you knowwhat price range you can look at for your new home. Given your income and financial commitments, banks will provide a pre-approved amount (to which terms apply) beyond which they would not lend. This gives you a ceiling for the maximum you can spend on buying your home. Mortgage advisers Amortgage adviser can help you find the best deal froma number of different lenders. Remember, mortgage advisers’ fees are paid for by the lender, not you. A Mortgage Express mortgage adviser has the knowledge and expertise to find the best option to suit your individual needs. A home is one of themost significant investment decisions you will make and they’re here tomake sure that you know the different ways you can structure your loan and what the different lenders will offer you.
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