Hats off to Australia’s first home buyers! The latest lending data shows they’re refusing to let last year’s rate hikes and rising property values dampen their goal of buying a home. Here are four tips to help you buy your first home in 2024.
You have to admit, it’s tough for first home buyers in the current market.
Not only were they faced with 13 cash rate hikes in just 18 months – which can obviously affect borrowing capacity – but property prices still rose 8.1% in 2023, according to CoreLogic.
Still, they won’t be deterred.
The latest lending data from the Australian Bureau of Statistics shows a massive 20.3% jump in the number of loans to first home buyers last year.
But it takes more than grit and determination to buy your first home. A few handy hints can also help.
If you’re hoping to buy your first home, below our top tips can help you become home loan-ready in 2024.
1. Make a visit to your local financial institution
First home buyers are often unsure about what’s involved in buying a home. That’s fair enough.
We can help you know where you stand in terms of loan approval, the costs you should plan for, and the steps you can take now to help improve your finances.
As we have a variety of lending options available, we can also explain what home loans and features may be best suited to your individual circumstances.
2. Save, save and save some more
Lenders like to see you have a decent track record of regular saving. It shows you have the discipline to manage home loan repayments.
Take a look at your budget, work out where you can trim back, and consider funneling as much into savings as possible.
It may mean cutting back on luxuries and treats for a while but it’s not forever. And the more you save now, the less you potentially need to borrow.
3. Consider lowering your credit card limit
When you apply for a home loan, lenders are often more interested in the limit on your credit card than the balance outstanding.
That’s because you could, in theory, max out your card after buying a home, which may affect your ability to manage mortgage repayments.
The average card limit is about $9,500, according to a Finder analysis of RBA data.
Shrinking this down (with a quick call to your card issuer) might get you over the line for the loan you need.
4. You may not need a 20% deposit
Sure, a 20% deposit is a target worth aiming for.
But you may be able to buy with less.
The First Home Guarantee and Regional First Home Buyer Guarantee let first home buyers get into the market with just a 5% deposit and no lenders mortgage insurance.
That might mean you’re ready to buy now!
Call us today for a chat about buying your first home, and discover how we can help you find a home loan that matches your needs at a competitive rate.
If that sounds like a good plan to you, contact us via the website or call 1300 314 900 – our local lending specialists are here to help.
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