First home buyers in Australia deserve a round of applause. Despite facing numerous economic challenges, including 13 cash rate increases in an 18-month span and a continuous rise in property values by 8.1% in 2023, as reported by CoreLogic, these determined individuals are making an impressive comeback.
Recent data from the Australian Bureau of Statistics indicates a remarkable 20.3% surge in loan acquisition among first home buyers last year alone. This tenacity, however, is complemented by prudent planning and strategic actions. If you’re aspiring to secure your first home in 2024, consider our top tips to ensure you’re well-prepared for a home loan.
1. Begin with a Mortgage Broker Consultation
Navigating the complexities of the property market can seem daunting for first-time buyers. This is precisely where a mortgage broker can make a significant difference. They will assess your readiness for a loan, inform you of anticipated costs, and offer strategies to streamline your financial standing.
2. Prioritise Savings
A consistent savings habit is a green flag for lenders, demonstrating your capacity to handle mortgage repayments. Review your budget, identify areas for cost-saving, and maximize your savings. Although this may require some temporary sacrifices, it can significantly reduce your future borrowing needs.
3. Re-evaluate Your Credit Card Limit
Lenders often scrutinise your credit limit more than your spending. A high limit increases the risk of debt, which could jeopardise mortgage repayments. Consider reducing your limit to strengthen your loan application. Remember, the less credit you have available, the better it looks to a lender.
4. Investigate First Home Buyer Incentives
First home buyers have access to a plethora of support schemes, including First Home Owner Grants and potential stamp duty concessions. While a mortgage broker can help demystify these benefits, personal research is invaluable in understanding the nuances of each offering, especially with regard to property type and price ceilings.
5. Rethink the 20% Deposit Standard
While the traditional advice is to aim for a 20% deposit, it’s possible to enter the housing market with less. Programs like the First Home Guarantee and Regional First Home Buyer Guarantee are designed to enable prospective buyers to purchase with a minimal deposit and forego lenders mortgage insurance.
This could mean you’re closer to homeownership than you think.
I invite you to reach out for a personalised discussion about securing your first home. My expertise in matching you with a competitive loan that aligns perfectly with your aspirations.
Let’s take the leap towards securing your future home in 2024.
