Page 23 - Smartline eBook - First home buyer
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What happens on settlement day?
Settlement day is the day you finally take ownership of your new home. The reality is that as a buyer, you don’t have to do much on settlement day - although you may wish to carry out a final inspection before settlement to make sure the property is in the condition you agreed.
Traditionally settlement involves the vendor and buyer’s lawyers and banks getting together and swapping documents. This is gradually changing as digital settlement (e-conveyancing) becomes more popular.
Once all the paperwork is in order, your solicitor or conveyancer will call to let you know everything is finalised. You can then get the keys to your new home from the real estate agent and start moving in. If you are considering taking out a variable rate loan, below are some tips.
Congratulations. You’re now a home owner.
How to pay off your home loan sooner
When you take out your first home loan, you usually sign up for between 25 and 30 years. But that doesn’t necessarily mean it should take you this long to become mortgage free. If you are considering taking out a variable rate home loan, here are some tips for paying off your home loan earlier so that you own your home outright.
1. Set up a redraw account.
2. Haveyoursalarypaidintoamortgageoffsetfacility.
3. Increasetheamountofyourregularrepayments.
4. Increasethefrequencyofyourregularrepaymentsbyadjustingthepaymentcycle (e.g. fortnightly or weekly instead of monthly).
5. Checkinonyourhomeloanratetomakesureyou’restillgettingagreatdeal.
6. Channelanyextramoney,refunds,orlumppaymentsintoyourhomeloan.
7. Decrease the term of your loan.
Visit our extra repayments calculator to see how you could get ahead
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