There is nothing as exciting as buying first home in Sydney
, right? However, buying a first home can be a daunting task when you don’t know what process is involved. When you decide to buy your first home in Sydney, you may have to face numerous challenges, especially when you have to secure finances. To tackle an uncertain economic condition, you can look for a reliable and experienced home loan broker. Organising your home loan can be a difficult task without any assistance, so in today’s blog, we will help you get into that first home and answer a few questions that you might have before purchasing your first home.
What Things do First Home Buyers in Sydney Need to Consider?
Buying your first home is an exciting as well as stressful journey, but it can be a stress-free journey if you consider the following things before purchasing your first home in Sydney:
- Check out your borrowing capacity
When you apply for a home loan, the lender will assess your borrowing capacity. They will consider various factors before giving you approval for a home loan. One of the biggest factors is determining your home finances. The way you save and spend money will lead up to your loan application which will have an impact on the outcome. If you are a first home buyer home loan in Sydney, then it is advisable to seek help from a professional home loan broker after deciding to buy your first home in NSW.Star Homeloans can help you establish strategies and budgeting practices to increase your chances of getting approval for a first home buyer loan. We can help you get loan pre-approval so you know what you can afford or borrow to spend on your first home.
- How much deposit do you need?
Determining how much deposit you need is one of the most important things that Sydney first home buyers must consider. Generally, the more deposit you have, the better your chances of home loan success. However, various government grants allow eligible first-home buyers to boost their deposits when their savings are low. It would be beneficial for first-home buyers to seek help from mortgage brokers. Brokers know about every government grant and concession to help borrowers to buy their first home with a minimum deposit.
- Government Grants for First Home Buyers
Government offers various grants and concessions to first-home buyers. According to the First Home Buyer Grant in Sydney, the FHOG is worth $10,000, but conditions may apply. The home guarantee scheme supports first-home buyers to buy their first home sooner.
The home guarantee scheme includes:
- The first home guarantee scheme supports eligible first-home buyers to purchase their first home with only a 5% deposit.
- The regional first home buyer guarantee scheme supports eligible first home buyers to get home ownership in a regional area with only a 5% deposit.
- The family home guarantee scheme is for eligible single parents with at least one dependent child to purchase their first home with only a 2% deposit.
- Meet Eligibility Criteria
If you want to take a home loan to buy your first home, you need to meet the possible requirements. You need to be 18 years old or above, and a permanent resident or citizen of Australia or in a de facto relationship or married to a permanent resident or Australian citizen. Most lenders will also consider your credit history, residency, employment status, and income when they review your home loan application.
- Home Loan Repayments
As the name implies, home loan repayment is a pre-agreed amount that you will have to pay to your lender in instalments to repay the amount you borrowed to buy a property. How often you need to repay will depend on the terms of your loan. You can also use our loan repayment calculator
to estimate how much you need to repay on a specific home loan amount. If you want to know the exact amount you need to repay, you can contact Star Homeloans.
If you’ve decided to buy your own first home, then you need to consider all of the above-mentioned points. If you want to buy your first home in Sydney, you can contact Home star home loans as we are located in Sydney and serve our home loan and mortgage services across Australia.