With so many options available to choose from, finding the best and right first home buyer home loan can be overwhelming. When buying a first home, you might have various questions in your mind. However, when you seek help from a broker, then you don’t need to worry about it. Star Homeloans can help first-home buyers choose the right home loan option that will match their financial circumstances. To know how you can get a suitable home loan as a first-home buyer, keep reading this blog.
Overview of First Home Buyer Home Loans
A home loan is the amount of money lent by a financial institution or a bank to help borrowers to finance the purchase of a property. Home loan for first home buyers is designed for individuals who want to buy their first home. Brokers work with a panel of lenders who offer special deals and discounts to grab the attention of first-time home buyers. There are usually various offers and deals available.
How to Find the Best First Home Buyers Home Loan?
First-time home buyers, like all other borrowers, want to get approved for a home loan that matches their requirements. Take a look at the following tips to find the best home loan for your first home:
Check Your Current Interest Rate
If you have a lower interest rate, then you are likely to pay lower repayments. A home loan broker can help you get the right interest rate after considering your financial condition.
Choose Fixed or Variable Rate Loans
Variable-rate loans offer more features, and it changes based on the current market rate, which means they can affect the value of your repayments. On the other hand, fixed-rate loan means you could have a part of the loan fixed at a specified rate and the rest part at a variable rate.
onsider Your Deposit Size
If you have a bigger deposit, your repayment will be lower and it also makes it easy to get your home loan approved. Most banks want you to have a 10-20% deposit, although there are some schemes through which you can buy your first home with only a 5% or 2% deposit, conditions may apply.
Check Repayment Type
The majority of first-time home buyers will select a loan with principal and interest repayments, in which you pay back the principal and interest at the same time. It could be possible to obtain an interest-only loan, which normally has a higher interest rate but lower monthly payments because no principal is being repaid. Banks are hesitant to offer interest-only loans to first-time homebuyers because they want to see that you are making progress towards paying off the debt.
You can consider all of the above mentioned points if you want to find the best first buyer home loans as per your financial condition. You can seek help from home loan brokers as they carry a wealth of knowledge in this field and can suggest you right home loan. You can explain your financial condition to brokers so they can help you find the right loan product.
How to Compare Home Loan as a First Home Buyer?
If you are a first-home buyer and looking to compare different home loans to choose the right one, then you can use Star Homeloans’ Loan Comparison Calculator. This comparison calculator can be used easily to compare different loans and decide which home loan saves you money. To use this calculator, first of all, you need to enter the loan amount and loan terms. Furthermore, enter the information about two home loans, such as ongoing monthly fees, upfront fees, intro term, intro rate, and ongoing rate. After entering the information in the calculator, the calculator will show you monthly loan repayment and total cost to help you get an idea of what home loan option is best for you.
The blog shares information on finding and comparing first-home buyer home loans as per the borrower’s financial circumstances. You can contact Home Star Home Loan as we have already served our home loan and mortgage services to several people. We gather all your home loan requirements first to help you choose the right home loan option.