So you’re buying your first home — congratulations! It’s an exciting milestone, but the mortgage side of things can feel like a lot to take in in if you’ve never done it before. Here are five things we think are worth knowing before you dive in.
1. Get a real sense of your borrowing power first
Before you fall in love with a place, it helps to know what you can realistically borrow. This comes down to your income, expenses and any existing debts. A broker can run the numbers across multiple lenders at once, so you’re house-hunting with a genuine budget in mind, not a guess.
2. Your deposit size matters more than you might think
A smaller deposit usually means Lenders Mortgage Insurance (LMI) comes into play — an extra cost that protects the lender, not you, if repayments become a struggle. The good news is there are government schemes for eligible first-home buyers that can reduce or remove this cost, so it’s well worth checking what you’re eligible for.
3. Every lender looks at applications a little differently
This is one of the biggest reasons first-home buyers choose to work with a broker. Rather than applying to one bank and hoping for the best, we can match your situation, income type, employment history and all, to lenders who are more likely to say yes on good terms.
4. Pre-approval puts you in a stronger position
Walking into negotiations with conditional pre-approval already sorted shows sellers and agents you mean business, and it gives you a clear, realistic budget to work within.
5. Budget for more than just the deposit
Stamp duty, conveyancing, building and pest inspections, and loan establishment fees all add up quickly. Planning for these costs early means no unpleasant surprises at settlement.
If you’re getting ready to buy your first home, it’s worth having a chat with a mortgage broker before you start house-hunting. It won’t cost you anything up front, and it could save you a lot of guesswork — here’s more on why it’s worth using a broker in the first place. Get in touch with our team whenever you’re ready.