Buying Your First Home
We’ll walk you through buying your first home
We’ll walk you through buying your first home
Buying your first home is often an exciting, but also overwhelming experience filled with challenges and decisions that need to be made along the way. Whatever your needs might be we're here for you every step of your journey to make your big purchase as seamless as possible.
The journey to buying your first home is similar to venturing into the great unknown and can be filled with endless stumbling blocks and difficult decisions that need to be made. We've gone to great lengths to break down the jargon barriers and help you navigate your moving journey with ease.
Here are some of the benefits of banking with us when you're buying your first home:
Buying your first home can be a life-altering venture with many highs and lows along the way. Maybe you're moving out of home for the first time? Maybe you've just completed your studies and you're starting your first job? Either way, we're here to help simplify the process.
When buying your first home it's important to consider all of your expenses, including not only the more obvious upfront costs, but also ongoing costs that will also need to be accounted for.
Now you understand what your upfront and ongoing costs are it's important to drill down on your budget. Every home buying journey should begin with a clear budget in mind. Budgets help us understand what we're spending, where we can save and what we can afford. In layman's terms, your budget is your expenses minus your earnings, and what remains could potentially be your savings.
When organising your budget don't forget to also include what you plan on saving per month to help you work towards any future financial goals you might have. BOQ Money can also take the hassle out of budgeting by allowing both BOQ customers and non-customers to easily find out where their money is being spent. Remember your borrowing power will be likely be affected by your income and also your expenses.
These tools make it easy to calculate how much you can save based on your income and expenses. These calculators can also help you determine what you're spending and where and how you can monitor your monthly expenses to make your move easier.
Obtaining a conditional approval is a great way of getting an actual estimate as to how much you can borrow and finding out whether you will be approved for a loan. It is also a great way of showing real estate agents that you're a serious buyer and can speed up the finance application process once you have signed the contract of sale.
The minimum, home loan deposit you should have is at least 5% of the purchase price of the property. However, Lenders Mortgage Insurance will apply if your deposit is less than 20%, which is a one-off fee that covers your lender against loss if you default on your repayments. This fee is added to your loan amount and allows you to borrow more than 80% of the property value for home loans.
Government grants are a great way to receive financial assistance when buying your first home. However, depending on where you buy, your eligibility requirements for your first home owners grant and the amount you may be entitled to varies from state to state.
For more information about grants available to first home owners, click on the links below:
Choosing the right first home loan is just as important as finding the right first home for you. Your home loan needs to have all the features that suit your personal circumstances and those that will help you pay off your home sooner.
When you're applying for your first home loan the lender will asses you on many factors. Your lender will want to ensure you can repay your mortgage over the course of the loan. The assessment will be broken down into three categories; what you earn, what you owe, and what you own.
What you earn
What you own
What you owe
Once you've found the first home of your dreams, it's time to make a formal offer. While negotiating your price with the seller can often be a challenging experience, it's important to remember to not be too inflexible, while also still be cautious.
Once you have reached an agreement with the seller, the settlement process can begin. On settlement day, your legal and financial representatives will ordinarily meet with the seller's representatives to transfer the ownership of the property from the seller to you (the buyer). The settlement date is set in the contract of sale, and is typically between 30-90 days.
Know what your repayments are for peace of mind
A fixed rate home loan gives you the certainty of knowing exactly what your repayments will be for up to 5 years, while protecting yourself against any potential interest rate rises.
*Subject to accepting BOQ’s terms and conditions as amended from time to time. Detailed property information varies from property to property. Carrier fees and charges may apply.
Conditions, criteria and fees apply. Full terms and conditions are available online or at any BOQ branch. Interest rates quoted are indicative only, and are subject to change without notice.
^Comparison rates calculated on the basis of a loan of $150,000 for a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Comparison rate for variable Interest Only loans are based on an initial 5 year Interest Only period. Comparison rates for fixed interest only loans are based on an initial Interest Only period equal in length to the fixed period. During an interest only period, your interest only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan. Information current as at 25 October 2019.
4Offer available for minimum $150,000 new to bank owner occupied lending only. For applications received from 26 August 2020. Maximum LVR up to 80%. Not available for Interest Only lending. Not available for the refinance or restructure of existing BOQ loans, construction home loans or Self-Managed Super Fund loans. Full terms and conditions available online at www.boq.com.au. Conditions, Criteria and Fees Apply. Information current as at 26 August 2020.
6Offer available for minimum $150,000 new to bank owner occupied lending only. For applications received from 3 April 2020. Maximum LVR up to 80%. Not available for Interest Only lending. Not available for the refinance or restructure of existing BOQ loans or Self-Managed Super Fund loans. Full terms and conditions available online at www.boq.com.au. Conditions, Criteria and Fees Apply. Information current as at 3 April 2020.