Buying your first home in the Southern Highlands? Mint Home Loans has got you covered with the essentials to keep in mind.
It’s a whole new world out there for the housing market, especially for first-time buyers.
With that in mind, the advice that’s given to folks buying for the first time has to evolve as well. We reached out to our pal Piers from Mint Home Loans to get the latest scoop on what first-time buyers need to consider when house hunting in the Southern Highlands.
Piers is dedicated to providing homeowners with the right lending advice and has tons of experience working with first-time buyers, so we know he’s got the knowledge.
Here’s the lowdown:
“The average first home buyer is now 36 years old,” says Piers. “If that’s not a sign that things have changed, I don’t know what is.”
While young people are still entering the market, the approach has evolved significantly from past generations.
“I’ve noticed many buyers who manage to save a 20% deposit, either solo or with a partner, tend to be older,” Piers adds.
So what does this mean for first-home buyers of all ages?
Well, we’re pretty sure the days of solely relying on our parents for guidance are gone. With the changing times, we need to explore all available options.
“I want to share various tools and ideas to help you enter the market, as opposed to the traditional method of saving. After all, if property prices keep rising, you could find yourself perpetually chasing a larger deposit,” says Piers.
Piers’ Tips:
1:: Don’t Forget Stamp Duty Exemptions:
“Stamp duty is a state-level tax,” explains Piers. “Currently, in NSW, there are exemptions for first home buyers, which is one less thing to worry about.”
While most people know about this exemption by now, it’s still an important factor to remember when you’re planning to buy your first home.
2:: Consider Lenders Mortgage Insurance [LMI]:
“This can be a game-changer if you don’t have a full 20% deposit,” says Piers.
While it’s a cost that safeguards the bank, it still allows entry into the market with deposits as low as 5%.
Another option is monthly LMI, which spreads out the expense over time.
“This approach might save you money as your property value rises and you pay off your loan.”
Eventually, you could consider refinancing to a loan that doesn’t require LMI, cutting down on your costs.
3 :: Look Into A 40-year Loan Term:
A 40-year loan term extends beyond the typical 30-year mortgage period, offering lower monthly payments that can boost your borrowing potential.
“Choosing this option doesn’t mean you have to stretch payments out for four decades; it’s about managing your cash flow while potentially getting into the market sooner,” Piers tells us.
4 :: Keep On Top Of Current Government Schemes:
“Government schemes are always changing, so it’s important to meet the right criteria,” adds Piers.
Help from an experienced broker will allow you to get the most out of them.
5 :: Think About A Family Guarantor Loan:
If your parent or sibling is up for guaranteeing your loan, you might be able to secure one with little or no deposit. Piers tells us that this style of loan is becoming increasingly popular.
6 :: Think About Reinvesting:
Instead of buying a place to live, how about purchasing an investment property?
“Live where you like, invest where it makes sense financially,” says Piers.
You might not get a stamp duty break or government grants this way, but it could speed up your entry into the property game as a smart move.
7:: Join Forces:
Team up with family or friends and join forces to invest together. By pooling resources, you can all get into the market sooner and use it as a stepping stone toward owning property individually.
These are all important things to think about if you’re looking to get into the market. Depending on your circumstances, other strategies may also be effective, Piers tells us.
Since everyone’s in different positions with different goals, it’s best to chat about your specific situation with an expert mortgage broker like Piers at Mint Home Loans.
Mortgage brokers know all the ins and outs of loans, can help find good rates, and make applying easier. Brokers can give personalised advice, have connections with many lenders, and can get approvals sorted, making buying your first home a lot less stressful.
To find out more about buying your first home with the help of Mint Home Loans head here.
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