I want to buy my first home!
What do you need to think about?
For most people, purchasing a home happens once or twice in their lifetime. As exciting as it can be, it can also be quite stressful.
To start with, you'll need to save a deposit. At least a 10% deposit would be best, but some financial institutions will accept a 5% deposit. Generally, anything under 20% means that you will have to purchase Lenders Mortgage Insurance (LMI). The benefit of having a larger deposit means that it's less that you have to borrow, which lowers the cost over the life of the loan in interest.
To get an idea of your deposit, you should choose an area that suits your needs and research the median price range of the area. When finding an area to suit your lifestyle, you should consider several elements. This includes; proximity to schools, public transport and any other utilities required. Consider local noise such as trains, road and whether it is under a flight path.
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It’s a good idea to have an initial discussion with a lending specialist before you apply for a loan. A MYCU lending specialist can help answer any questions and set realistic expectations. The more you apply for loans that you aren’t prepared for, the more it affects your credit history negatively.
Talk to a MYCU lending specialist at anytime on 1300 655 116. For this discussion you should bring in your payslips, bank statements and all relevant documentation for our lending specialist to assist you as best as possible.
Get pre-approval – look at our full range of Home Loans to discover what's best for you
Found your dream home?
Now that you’ve found your place, you will need to:
- request a contract from the Real Estate agent.
- ask for any applicable reports (i.e. strata reports/minutes).
- request an inspection (this will cost approximately $100 - $200).
You will also need to consider whether renovations are planned for the future, and contact the council about previous applications that may have been refused.
And you should get an independent solicitor or conveyancer to review the contract.
Buy, buy, buy
You can now make an offer or a bid! If the property is for sale, you will have to make an offer in writing. If it’s up for auction, you will need the deposit cheque ready on the day, should you be the successful bidder. We can help with that!
You can now exchange contracts and wait for settlement. This usually takes six weeks, but depending on the previous owner's financial position, settlement can sometimes be shorter or longer if there's mutual interest – discuss with your solicitor or conveyancer.
You own your first home! Congratulations!
You should now consider Home and Contents Insurance
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