Guide to Buying a Home

Buying a home, for most people, will be the biggest financial commitment of their lives. As more and more people have taken the plunge, the property market has boomed throughout Australia. Here at Mortgage Brokers .net.au we aim to make buying your home as quick and stress free as possible.

How much can I borrow?

Obviously this depends on your income, current financial commitments and a few other factors. We recommend that you contact us here at Mortgage Brokers .net.au, so we can assess your financial situation and advise you as to exactly how much you can borrow.

Are there hidden extras?

Buying a home will inevitably cost more than you think. The extra charges you may run into vary from state to state and need to be given consideration before you take our a mortgage. Some of the additional fees you can expect to pay will incorporate the following:

• Legal fees
• Land registry fee
• Other searches
• Local authority search fee
• Stamp duty
• Survey – mortgage valuation survey
• Homebuyers’ survey
• Full structural survey

In order to avoid adding to any extra costs, our service is free* of charge and you are obligation free at all stages throughout the process. Because we are paid commission by the home loan providers for introducing your loan, you will never be charged a fee from Mortgage Brokers .net.au

Take a second look

It is important to not be swayed by emotion. If you have found a property you like, make sure you go back and take a second look. Use the second viewing as a methodical and realistic look at the house. Will it suit your needs both now and in the future? If you are looking for a ‘renovators delight’, consider taking a professional along with you to quote on your ideas for the property. Avoid being sidetracked by superficial finishing’s that can be easily changed, instead focus on passing a critical eye over the place – this will allow your decision to be made with your head as well as your heart.

How do I put in an offer?

The opening offer has great bearing on the final selling price, so it is best to work out where you would like to finish before you start. Say if a house is selling for $200,000 and you can afford to pay $195,000. You may consider putting in an offer for $190,000, if the bid is refused, add $1,000 more at a time until an agreed price is reached. If the property you are interested in is undervalued, it is best to act as quickly as possible. Similarly, if the property is in a high demand area, and there is the chance of several buyers wanting it – act fast. In this instance, you may consider saying then and there that you want it, on the condition that is removed from the market. This will decrease the chances of another buyer coming in and making a higher offer than yours. This should always be done with the condition that a pest and building inspection is completed and the property shows no serious faults. Once again, be mindful of not letting emotion get in the way. If you can’t reach an agreement at the price you want, simply walk away.

Where do I go for a mortgage?

It really pays to shop around. This is why using an independent mortgage broker such as Mortgage Brokers .net.au is such a good idea. We work independently of the major banks, and don’t sell any of our own products; ensuring that the home loan you get is the best one for you. We have access to some 30 loan lenders and over 500 home loan products throughout Australia. With such vast market coverage, we have the ability to do all the leg work for you when it comes to finding a loan which will suit your needs both now and in the future.

What happens next?

You now need a solicitor to do conveyancing. In other words, checking the legal aspects of the sale: that the seller has the legal right to sell the property, that no one else has right of way over it, that no future developments are planned that could affect the property and that there are no land disputes.

The final steps...

Now comes the process of contracts being exchanged between you and the seller. This is all carried out by lawyers and means that both parties are committed to the sale. If, for whatever reason, you decide to withdraw from the sale, you will lose your deposit. The exchanging of contracts also means that the seller cannot accept a higher offer on the property. This is also the time when the settlement date of the sale (when you get the keys and can move in) is set. Typically, this is 4-8 weeks later, but in some cases could be as little as a few days.