First-time homebuyers in Melbourne undoubtedly want to leverage the new loan guarantee scheme of the federal government. The scheme permits or enables home buyers to buy a property with a minimal deposit.
Qualified homebuyers in Melbourne can access the new loan guarantee scheme when buying a property worth at least $600,000. And tons of inner-city and apartment units means many excellently-located suburbs fall within the purchase price cap of the government.
If you plan to buy a house in Melbourne, here’s a quick guide to help you out.
Know If You Are Eligible For A Mortgage
There are many reasons why people decide to move to Melbourne (refer to this blog post for the top reasons to move to Melbourne). The city has the best and biggest sport, work, art, food, and real estate conditions.
And when it comes to home buying, it’s the best of times to do it. As we’ve mentioned, the new loan guarantee scheme is one of the many advantages that you can enjoy. But before you go deeper into the proceedings of becoming a homeowner in the city, you need to find out if you are eligible for a mortgage.
Perhaps you are, or not. The following are some of the criteria to be eligible for a home loan in Australia:
- At least 18 years of age
- Residency
- Situation
- Self-employed
- Good credit score
- Liabilities
- Deposit
- Income
- Expenses
- Assets
- Loan amount
- Type of property
- Reason for purchase
If you meet these requirements, you can then be qualified for a home loan. Be sure to research the various kinds of mortgage available. By that, we mean, know your options. Don’t get too focused on just one type. Explore!
Although it can be a real challenge to learn different mortgages available in the Melbourne market, it is crucial that you invest some time and effort into comparing as many home loans as possible.
Keep in mind that it’s the only way for you to make sure that you have the best mortgage with the right rate and features.
Find Out How Much Down Payment You Can Afford
Does knowing it matter? Of course! The more cash you can put as a down payment on a home loan, the more money you could possibly borrow. Additionally, you may be able to qualify for other kinds of loans with lower rates.
Most properties in Melbourne are attainable with a down payment of 5% or 10%. However, if you put down at least a 20% deposit, then you will not have to pay for the mortgage insurance of the lender.
Settle All Your Debts
Undoubtedly, it is difficult and tough to get approved on a home loan if you are in debt. That said, it is important that you correct any bad credit issues right away that might influence your application.
It is particularly important for first-time homebuyers to sort out their credit and pay off large debts before applying for a mortgage. Consider repaying the highest interest rates first and then move on to the next one. Moreover, survey your options for merging a few of your debts into one for lower and easier monthly payment.
Compute Your Monthly Mortgage
Ensure that you know precisely how much you can afford to pay for your monthly home loan repayment. As such, it is wise to compute it now and think hard about your budget. Set the amount that you can afford to pay before you start the negotiations.
Hire Professionals
So that you can secure your home loan, it is an excellent idea to hire professionals. Splurging in the correct and proper guidance can pay off over time. Get the help of a buyer agent, mortgage broker, and conveyancer. These professionals will undoubtedly work with you hand-in-hand and in every step of the process.
Obtain The Best Interest Rate
For a successful home purchase, you need to secure the best rate possible. You can do this by researching and checking out mortgages from different banks and lenders to determine what kind of rates they offer. Also, search for special offers that are aimed for first-time home buyers like you.
Takeaway
With the right knowledge, qualified professionals, and advice, the path to purchasing a home in Melbourne could be smoother and easier than it seems. Armed with these pointers, you can certainly offer yourself a clear picture of how, where, and when you can purchase your new home.
Keep in mind that lenders will want to know everything about you as a borrower. Thus, it is wise to be prepared when you decide to buy a property. Speak to an expert when you are ready to look for a property or house in Melbourne that suits you and your entire family.
