Looking to buy your first home?

If you’re looking to buy your first home, chances are you’re also looking for your first home loan. It may seem daunting but it doesn’t need to be. With some useful knowledge and advice and help along the way, you’ll find the right loan, and more importantly, get further towards being able to buy your first home.

Be ready for your First Home.

It’s important you can have your home loan, and still leave room for the other things you want to do in life too.

More than half of Australian borrowers now use a broker to secure their home loan and don’t forget, we work for your best interests, not the banks.

Urban Money work on a transparent fee basis, which means there’s absolutely no question about who we’re working for – we’re 100% on your side for the life of the loan.

Here are the stages we’ll go through:

  1. Advise on structure – When we know what your future plans are we can help you structure to maintain flexibility.
  2. Choose the right home – this is your choice of course, but we’re happy to give you property insights to help you make your offer.
  3. Find the right lender – We have more than 30 lenders to create the best overall solution to fit your individual plan.
  4. Help you complete the paperwork – We’ll even come to you to make things as simple as possible.
  5. Submit the application – We’ll get the application ready and help you with the extra documents required.
  6. Be your agent with the lender – We’ll keep you updated with progress.
  7. Organise settlement – We’ll coordinate your agent and conveyancer when it’s time to close the deal.
  8. Review your loan 6 monthly to ensure we’re actively keeping you with the best option – Because things change, and unlike a bank, we’ll let you know if we’ve found you a better offer.

What costs should I budget for when buying a home?

There are a number of fees and costs involved when buying a property. To help avoid any surprises, the list below sets out many of the usual costs:

This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To estimate your possible stamp duty charge, visit our Stamp Duty Calculator.

Generally around $1,000 – $1500, these fees cover all the legal requirements around your property purchase, including title searches.

 

This should be carried out by a qualified expert, such as a structural engineer before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).

Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to a pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).

Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. We will let you know what your lender charges but allow about $600 to $800.

Don’t forget to factor in the cost of a removalist if you plan on using one.

 

If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also consider whether to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.

You will need to include council and water rates along with regular loan repayments. It is important to also consider building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan.

Let's chat

We will call you as soon as we can to chat about what you are looking for and how we can help you get there. Nothing formal just a good old fashioned conversation.