Understanding Your First Home Buyer Budget
Before you begin viewing properties in Keilor, establishing a clear first home buyer budget is essential. Your budget determines which properties you can realistically consider and helps you avoid disappointment later in the process.
Start by reviewing your finances thoroughly. Calculate your savings, including any gift deposit from family members, and determine how much you can allocate towards a deposit. For first home buyers, low deposit options such as a 5% deposit or 10% deposit are available through various government schemes.
Consider speaking with Simple Lending early in your property search. Understanding your borrowing capacity before you start looking at homes ensures you focus on properties within your price range and prevents wasted time on unsuitable options.
Preparing Your First Home Buyer Checklist
A comprehensive first home buyer checklist keeps your property search organised and focused. Your checklist should include:
- Desired suburbs and proximity to work, schools, or family
- Property type (house, apartment, townhouse)
- Minimum number of bedrooms and bathrooms
- Must-have features versus nice-to-have features
- Maximum purchase price based on your budget
- Timeframe for purchasing
Having these criteria documented helps you evaluate properties objectively rather than making emotional decisions during inspections.
Researching Keilor's Property Market
Keilor offers diverse housing options for first home buyers in Keilor, from established homes to newer developments. Understanding the local market helps you identify good value and make informed offers.
Research recent sales data for comparable properties in your target areas. Attend open inspections regularly, even for properties you're not seriously considering, to develop a sense of market pricing and property quality. This knowledge proves invaluable when you find a property you want to purchase.
Consider factors beyond the property itself, such as future development plans in the area, public transport access, and local amenities. These elements affect both your lifestyle and the property's future value.
Understanding Home Loan Options and Pre-Approval
Securing pre-approval for your first home loan before making offers gives you a significant advantage in the property market. Pre-approval demonstrates to sellers that you're a serious buyer with confirmed financing.
When exploring home loan options, consider:
- Fixed interest rate: Provides certainty with locked repayments for a set period
- Variable interest rate: Offers flexibility and potential access to interest rate discounts
- Offset account: Links a transaction account to your loan to reduce interest charges
- Redraw facilities: Allows access to additional repayments when needed
Compare different loan features and discuss which options suit your circumstances with Simple Lending. The right loan structure can save you thousands over the life of your mortgage.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Simple Lending today.
Accessing First Home Buyer Grants and Concessions
First home buyers in Victoria may qualify for various grants and concessions that reduce upfront costs:
- First home owner grants (FHOG): Available for purchasing or building a new home
- First home buyer stamp duty concessions: Substantial savings on stamp duty for eligible properties
- First Home Loan Deposit Scheme: Enables buying your first home with as little as a 5% deposit while avoiding Lenders Mortgage Insurance (LMI)
- Regional First Home Buyer Guarantee: Additional support for buyers in regional areas
- First Home Super Saver Scheme: Allows using voluntary superannuation contributions towards your deposit
Understanding your first home buyer eligibility for these programs before starting your property search helps you maximise your purchasing power. Each scheme has specific criteria regarding property value caps, income limits, and citizenship requirements.
Managing Lenders Mortgage Insurance
When considering a purchase with less than a 20% deposit, you'll likely encounter Lenders Mortgage Insurance (LMI). This insurance protects the lender if you default on your loan and can add thousands to your costs.
However, several strategies can help you avoid or minimise LMI:
- Utilising the First Home Loan Deposit Scheme to buy with a 5% deposit without LMI
- Accessing profession-based LMI waivers if you work in certain industries
- Using a guarantor to reduce your loan-to-value ratio
- Saving a larger deposit to reach the 20% threshold
Discuss these options when you apply for a home loan to find the most cost-effective solution for your situation.
Conducting Effective Property Inspections
When attending property inspections in Keilor, approach each viewing methodically. Bring your first home buyer checklist and take notes on each property immediately after viewing to avoid confusion later.
Look beyond cosmetic presentation to assess:
- Structural condition and signs of water damage
- Natural light and ventilation
- Storage space and practical layout
- Noise levels from nearby roads or neighbours
- Condition of major items like hot water systems and air conditioning
Don't hesitate to attend a second viewing if you're seriously interested. Visit at different times of day to understand how the property and neighbourhood function during various periods.
Understanding the First Home Loan Application Process
Once you've found a property and made an offer, the first home loan application process begins in earnest. Having your documentation prepared accelerates approval:
- Proof of identity and residency
- Recent payslips and tax returns
- Bank statements showing savings history
- Details of existing debts and financial commitments
- Contract of sale once your offer is accepted
Your mortgage broker manages communication with lenders and keeps your application moving through the approval stages. They also negotiate on interest rate discounts and loan features to secure favourable terms.
Making Strategic Offers
When you've found the right property, making a well-considered offer requires balancing enthusiasm with financial prudence. Your research on comparable sales provides guidance on appropriate offer prices.
Consider including a building and pest inspection clause in your contract to protect yourself from unforeseen structural issues. This clause allows you to withdraw or renegotiate if significant problems are discovered.
Having pre-approval for your home loan strengthens your negotiating position. Sellers prefer buyers who can demonstrate their financing is already arranged, reducing the risk of the sale falling through.
Working with Mortgage Brokers Throughout Your Search
Partnering with Simple Lending throughout your property search provides ongoing support beyond just arranging your first home loan. Your broker can review properties you're considering and provide advice on financing implications before you make offers.
As market conditions change, your broker keeps you informed about interest rate movements and new home loan products that might suit your needs. This ongoing relationship ensures you make informed decisions at every stage of buying your first home.
Taking Action on Your Property Search
Finding the right property in Keilor requires patience, preparation, and persistence. By establishing your budget, understanding your home loan options, accessing available grants and concessions, and conducting thorough property research, you position yourself for success.
Remember that buying your first home is a significant financial decision that benefits from professional guidance. Simple Lending specialises in helping first home buyers throughout the entire process, from initial budget planning through to settlement.
Call one of our team or book an appointment at a time that works for you to discuss your property search strategy and home loan options. We'll help you understand your first home buyer eligibility, compare loan features, and secure financing that supports your homeownership goals.
