Buying your first home is probably going to be the most important decision you will make in your lifetime. You not only need to take into consideration the cost but also the location, size & your future. All of this requires a lot of hard work & knowledge, if you’re living in Sydney or Melbourne, buying your first home can seem even harder in 2017.
The first consideration is always going to be ‘can I afford it?’… It’s a question which seems straight forward, but if you’re not currently renting & still living at home, monthly repayments on a mortgage can be a big shock to some. Making a few strict lifestyle changes before committing to a home loan can ease the change, try putting aside what you’d be paying in repayments monthly to help you adjust to what is usually a huge part of your income going towards bills. You can easily calculate an estimate of what your repayments should be, by using a loan repayments calculator which you can find here.
Aside from mortgage repayments which can fluctuate over the borrowing period, you need to also consider other costs associated with owning your own home. If you’re borrowing more than 80% of the property price, you also need to pay for lenders mortgage insurance (LMI). Other insurances you may not be used to paying include property insurance for protection against fire, theft and weather damage.
For many first time buyers being able to pay LMI instead of saving a 20% deposit for their first home has it’s benefits. LMI gives you the potential to own your first home sooner. With some lenders you can borrow up to 95% of the property price. LMI is usually paid as a one-off lump sum at settlement but it can also be added into the loan. A dedicated mortgage broker at Euphoria Loans can help you decide which option is better for you.
From July 1st, first home buyers in NSW will no longer have to pay stamp duty on new or existing homes up to $650,000. There are also big discounts on stamp duty for homes up to the value of $850,000. That could be a saving of as much as $34,360. If you’re building or purchasing a new home, you could also be eligible for a $10,000 grant to help you get started.
There really has never been a better time in the past few years to buy your first home in Sydney. Get in contact with Euphoria Loans for a full breakdown of costs associated with buying your first property & the new government incentives you could take advantage of.