Tips for first home buyers

It has never been more difficult for the first home buyer to enter the market. However, with the recent softening of the market and announced Federal Government deposit guarantee assistance, maybe the time is right to move. We turned to Peter Brazendale to provide some guidance, on how best to plan your first property purchase.

How is MyState Bank helping home buyers?

At MyState Bank, we don’t just want to write the loan and then wave goodbye. We know that people’s personal circumstances change over the lifetime of their loan and we want to support our customers for the long term. That’s why we start each loan getting to know each of our customers’ needs via a “Discover” session. By better understanding what your goals and personal circumstances are, we can tailor your lending and overall banking to better suit your individual needs. As local lenders we also know what’s happening in the Tasmanian market. We’re experienced and here to help any customer, whether they are looking to purchase a home for the first time, purchasing land, wanting to build or upsizing or downsizing their home.

What is the most important factor when it comes to choosing the right loan?

We find that many customers think rate is the most important factor when choosing a loan. However many often don’t take into account other common fees and charges on home loans, such as early payout fees, establishment fees, monthly account keeping fees, or the benefits of linking other products. It’s important to take a holistic approach when choosing a Home Loan Provider.

What advice do you have for a first home buyer?

Our number one tip for First Home Buyers is to be prepared and seek expert advice from a lender and obtain a Pre-Approval of Finance prior to commencing your property search. We can help you to understand what’s involved in the loan process and how much you can borrow. Gone are the days when a deposit of 20% was necessary to secure a home loan. Now, with the availability of Lenders Mortgage Insurance – insurance that protects your lender in the event you can no longer pay off your loan – the deposit amount required is much less strict. In some cases, you only need a minimum of 5% of the value of the home. However, we always recommend you aim for around 10% as a starting point, so you can set a savings goal. The more you save, the less you have to borrow, and the less you’ll pay in interest over the life of your loan. There’s no doubt that there are many different options and things to consider when it comes to choosing a loan. It’s worth exploring all of your options to make sure the one you choose suits your circumstances and that’s where we can help. Knowledge is power when it comes to creating your own success.

Visit mystate.com.au for more information.