So you’re about to embark into the responsible world of mortgages and home ownership!
Buying your first home is a real milestone - it’s exciting, but also very daunting. It’s also completely new territory and important to get it right. They say to learn from your mistakes, but we’d rather not make them in the first place, especially when it comes to our biggest asset!
We speak with first home buyers nearly every day so we get it (it’s hard!). Which is why we’ve put together a list to help get you there…
First home buyers: Top 5 mistakes to avoid
Changing jobs just prior to applying for a loan
Congrats on the new job but…. It might stall you getting in to your first home! Many lenders look for job stability, and prefer you to be in a permanent role beyond your probation period.
My bank will give me the best offer in the market because I've banked with them since I was 10.
Unfortunately these days to a bank you really are just a number. Nearly every bank will have room to negotiate on an advertised rate and offer cash bonuses to entice you to go with them. If you're going it alone, you'll want to go to a few different banks (and let them know about a great deal another bank has offered you). Alternatively, you can leave the hustling up to your Apex Mortgage Adviser – we know the market and what the best deal is for you (not just the lowest rate) and which lenders are likely to be flexible to your situation.
Lowest is best?
When a lender is offering a very low fixed rate you should just go for it, right? This might be the right solution for some, but there are so many different options and you don’t need to stick to just one. A mix of different fixed periods, some floating, offset or revolving (or all of the above) can help you pay less interest, have flexibility in payments and spread risk. This is what is known as a mortgage structure, and a good mortgage adviser can help structure yours to suit.
Not arranging your finances first
It’s certainly helpful to know your maximum lending (and the real costs of home ownership – including interest, insurance, home maintenance, and legal fees) before shopping for your 4 bedroom manor (with pool and double garaging, of course). It’s also best to have your loan pre-approved so when you find something that’s just right, you’re all ready to go. Interestingly, all lenders have different lending capacity – if you don’t fit at one you might fit perfectly somewhere else. Because our advisers have access to all lenders calculators, they can help advise what’s possible.
Paying the minimum repayments
Here’s something that might be helpful to know: the banks make more money when you’re paying more interest! Which is why they might not mention the thousands you’ll save by increasing your repayments by as little as a few flat whites a week (we won’t mention the smashed avocado).
We might be biased, but we think it’s a good idea to speak to a mortgage specialist – the best thing is they get paid by the banks so it doesn’t cost you a thing. They have the expertise to structure your mortgage right, get you a good deal and save you money in interest! Simply get in touch to request a chat with an Apex mortgage specialist.