Page 25 - Smartline eBook - First home buyer

1 NOT HAVING A HANDLE ON 6 WAITING TOO LONG
YOUR CREDIT HISTORY
Make sure you do what you can to maintain a good credit history by paying bills and debts on time and not making too many applications for credit.
2 BORROWING TOO MUCH
Never borrow more than you can afford to repay; allow a buffer for a change of circumstances, e.g. parental leave, loss of income or an interest rate rise.
3 NOT FUTURE PROOFING YOUR HOME
Buying, selling and moving can be expensive so make sure you think ahead for the next few years so you don’t lose money.
4 NOT FACTORING IN UPFRONT COSTS
Upfront costs can’t be covered by your home loan. You’ll need to factor them into your budgeting. This includes any deposit, stamp duty, bank fees and charges, building and pest inspections, conveyancing or legal fees.
5 TAKING OUT THE WRONG HOME LOAN
Home loans come with a variety of features so it’s important to choose the right one
for you.
THINKING THE MARKET WILL CHANGE
There’s an opportunity cost to waiting too long to enter the property market, particularly if prices are rising. Once you’re on the property ladder, you’ll start reaping the rewards.
7 TRYING TO FIND THE COMPLETELY PERFECT PROPERTY
The perfect property doesn’t always exist - no matter what your budget is there’s always a compromise to be made, so know what you can and can’t give up.
8 IGNORING HOME LOAN FEATURES THAT COULD GET YOU AHEAD
From fixed or variable interest rates to features like offset accounts, redraw facilities, or interest- only periods - make sure you work
them to your advantage.
9 BEING TOO CAUTIOUS
It’s important to understand the current market before you make an offer or bid at auction. But don’t let caution hold you back completely from making an offer when you see the right property.
10 STICKING WITH YOUR EXISTING LENDER
It always pays to shop around when you’re looking for a home loan to find the lender and home loan that’s right for you - make sure you check home loan features as well as the comparison rate.
First home buyer guide 25