7 tips for buying a home in 2021

Buying a home is a big life event. Read through our tips for getting organised and finding your dream property.

10 February 2021|4 minute read

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Whether you’re starting out on your journey to buy a home or are well advanced with your savings and property plans, there are often times when the property market can seem confusing and a little daunting.

Friends, family, and colleagues often have different opinions or advice about what you should know before buying a home, so it can be overwhelming. But don’t drown in confusion.

Aussie, the home loan experts, want to help you accomplish your property goals in 2021. We’ve pulled together a list of 7 things you need to know before buying a home.

What you need to know before you buy a home 

1. Be realistic

Buying your home is exciting but it’s important to work out how much you can afford to spend before you start shopping for a home to buy.

This will include how much you can afford for a deposit, stamp duty, fees, and home loan repayments.

Tailoring your search for a home according to what you have the capacity to afford could help avoid any disappointment or pressure.

2. Get your finances in order

Make sure you have your finances and savings goals in order. Setting a savings goal early can make all the difference.

The sooner you start, the better position you’ll be in when it comes time to buy a home.

According to CoreLogic, the median time a home is on the market is the lowest it's been in 8 years.

This means, now more than ever, it's important to have your finances sorted before you go house shopping, so you don't miss out.

3. Understand what government incentives are available to you

Being aware of the latest government schemes and grants could help speed up your home buying process.

First home buyers may be eligible to access the First Home Owner Grant or the First Home Loan Deposit Scheme, along with other state government grants or incentives that may run in parallel.

Be sure to research or ask your broker about what government schemes are applicable to your situation.

4. Know the difference between fixed and variable interest rates

Everyone’s different when it comes to home loans.

A fixed rate means it’s locked and during the term, both your interest rate and your required repayments won’t change.

A variable interest rate home loan can change with lenders increasing or decreasing the interest rate attached to the loan at any time. 

There are many options available around fixed and variable rates, but it helps to know the basic pros and cons of each according to your situation.

5. Speak to a mortgage broker

There is value in talking to a broker - they can take the hassle and complexity out of the process to help you find the right home loan.

They act as a mediator between you and the bank or lender, often saving a lot of time, and can help you understand home loan jargon, including fixed and variable rates, as well as government incentives.

They’ll sit down with you and assess your finances first and establish your individual needs.

6. Think about selling your home, before you even buy it

When it’s time to start looking at open houses, remember to view the houses you visit as an investment, along with the potential of it being a home.

Consider all the features of the home and if they are desirable to you as a buyer. And when it comes time to upsize or relocate, you are more likely to get a good price when or if it’s time to sell later in the future.

7. Be ready to make an offer

As you focus on your property search or if you have already found a home you want to buy, it’s important to get in early and confidently make an offer.

To make an offer with confidence, it could be a good idea to get pre-approval so you have a clear idea of what you’re likely to be able to afford based on what a lender is prepared to loan you.

If you have a pre-approval, you’ve already got a head start towards getting your first or next home. You are generally in a good position to snap up a bargain quickly, proceed to full approval for your loan and exchange contracts before others in the market can.

Homes are selling at quicker rates across Australia and you need to be prepared to act fast to secure a property, organising your finances and pre-approval for a loan – and an Aussie Broker can help you be prepared.

Find out what the market looks like in your part of Australia by downloading Aussie’s Buyers’ Opportunity Report. It’s a bird’s eye view on the buying and selling conditions around the nation.

If you’re ready to get started on your journey to buy a home, contact an Aussie Broker today to help you get your property goals done in 2021.

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