Buying your first home can be very daunting, here are the steps you need to take to prepare as well as where the government can help.

      1. What can you afford?
       Firstly, you need to work out a budget so you know how much you can afford to repay each week. Ensure to factor in interest rates and possible future rises.
       Consider all costs, such as stamp duty, conveyancing fees, inspection fees and rates.
       Find out what concessions and grants you may be eligible for, such as the:
First Home Owner Grant (for new builds) – https://www.sro.vic.gov.au/first-home-owner/applying-first- home-owner-grant 
Stamp duty exemption or concession – https://www.sro.vic.gov.au/first-home-owner/apply-first-home-buyer-duty-reduction 
Principal Place of Residence Concession - https://www.sro.vic.gov.au/pprconcessions .

2. Save for the deposit
The ideal deposit amount is 20% (this means you won’t need to pay lenders mortgage insurance) The more deposit you have saved the better as most Lenders like a minimum of 20% deposit. You can secure a loan with a smaller deposit, however this can result in restrictive conditions being put on your mortgage.

Set up a savings account, term deposit or use the First Home Super Saver Scheme –
https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/
If you’re struggling with affordability, consider the Victorian Homebuyer Fund -
https://www.sro.vic.gov.au/homebuyer

3. Find the best home loan
When looking for a good deal on a home loan, the interest rate matters. Home loans are a long-term debt therefore even a small difference adds up overtime. Getting in contact with a broker to help you with this is highly recommended as they have lots of knowledge and information regarding finance and can help you secure the home loan that is best for you – Edward McInerney - Home Free Mortgages
Get pre-approval to buy, from your lender.  The lender will ask for evidence of your current financial situation to assess your ability to repay the loan. Pre-approval lasts for 3-6 months and shows you’re eligible to apply for a loan up to a certain amount. Without commitment to a loan, its just allows you to set an affordable price range. This can be beneficial for you as it lets sellers and agents know you are serious about buying.

4. Find a property to buy
You need to find a balance between the lifestyle you want and what you can comfortably afford.
Consider your needs and wants:
Make a list of your needs – eg. Property size, layout, public transport, proximity to schools etc.
Make a list of your wants – eg. Design, fittings, outdoor space, remember you can always make alterations/renovations to make it your own.
Stick to your price range, don’t waste time looking at properties that are not within your budget.

These are the steps you will need to undertake to prepare yourself for buying a property. Doing lots of research and speaking to experts in these fields will help you in the long run.

Please give Ranges First National a call on 9754 6111 to speak to one of our qualified Agents if you have any real estate enquiries, we are always happy to help!