First Home Buyers accounted for just 13% of the property market for the last quarter of the year. It is forecasted that this trend will continue through the next year. Here are some tips for First Home Buyers in purchasing an affordable home in 2014.
Low deposit loans, although very enticing can be a burden especially if you have to pay for Lenders Mortgage Insurance – an amount on top of your loan that protects lenders in case of a default. Saving for deposit and paying at least 20% up front can make you eligible for a home loan without having to pay for LMI. This will help you save thousands of dollars.
Budgeting and planning should include factors and expenses within your current financial standing. Be realistic, and always stick to your budget.
Take advantage of pre-approval. This ensures that you have an estimated figure of the loan, which will help you during the planning stage.
If possible, open an Offset Account. This will ensure that you have funds ready to be used to pay off the principal of the loan, and at the same time this can be accessed like a regular savings account in case emergencies arise.
Read more about this on the SBWire website.