Buying a home can take years – first you need to save for a deposit, spend the time to find the right home, organise a removalist, the list goes on!
It can be a stressful and arduous process however EasyPlan is here to help you make the process seamless and as easy as possible by helping you find the right home loan for your needs.
Borrowing to buy any home is usually the largest financial transaction most people will ever make, so here are some handy points to keep you on track.
Applying for a loan
- First you will need to demonstrate that you have saved a reasonable deposit. This ranges from 5% – 20% of the property purchase price
- You need to assess your borrowing capacity
- You need to determine the costs of purchase
Determine your borrowing capacity
Each lending institution will have its own criteria for establishing how much they will lend you, however EasyPlan can assist you in determining your borrowing capacity.
- Stamp duty land transfer
- Stamp duty associated with loan
- Legal fees and disbursements such as conveyancing/solicitor fees
- Mortgage transfer, land transfer and registration fees
- Lending institution application fees (where applicable)
- Incidentals which includes strata searches, pest and building reports
Factor in other costs:
- Mortgage repayments – we recommend that you factor in a buffer against any rise in interest rates of 1.5%-2%
- Building and contents insurance
- Rates – council and water rates are a government charge depending on the state and type of property
- Strata fees are payable if you are buying a home or unit and these will be revealed by the vendor’s agent for each property
Our home loan checklist is the perfect place to start to assess your application needs.