Buying Your First Home (part 1)

February 22nd, 2008 · No Comments

Buying your first home is extremely exciting and can be terrifying for many young investors. It’s also one of the best steps a person can take towards securing their future.
Its important to arm yourself with as many facts as possible before you take the plunge. Speak to a lending specialist, your accountant, and don’t forget to make sure you feel comfortable talking to these people.
There are many frequently asked questions, and I will try to answer a few of those today…

How much can I borrow?

Before looking at the market it is important that you know how much you can borrow, as this will directly influence the home that you purchase. How much you can borrow is determined by your income, expenses and current debts as these affect your capacity to repay your home loan. repayments typically should not exceed 30% of your pre-tax income.

How much deposit will I need?
Many of the major lenders now offer 100% loans, and even 107% loans, therefore you only need to contribute the purchasing costs… but to avoid having to pay Lenders Mortgage Insurance (LMI) you normally need to contribute 20% towards your purchase.The larger the deposit you have means you have to pay less in repayments each month..

Like It? Link it!