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Home in Western SydneyBuying a house is one of the most important decisions you will ever make. As a first home buyer, it is possible to be overwhelmed by the different aspects involved in a property purchase – particularly the various kinds of loans, how to save for a deposit, and then searching for that perfect home.

At Our Mortgage Options here in Campbelltown, we have put together a few tips that will help you build your savings and buy your first home in Western Sydney.

Find out how much to save

First, decide on the area or suburb where you want to buy, and monitor the property prices there. Looking at online or newspaper real estate listings and going to ‘open houses’ and auctions can give you an idea of prices and how they are fluctuating.

Then you can arrive at a deposit amount and monthly payments that you can afford. We can help you with this, or you can take the DIY route and use an online mortgage calculators, like the one on the ASIC website, to help you figure out your monthly repayments and how much you will be able to borrow.

It is always better to go for a more affordable house than to take on high monthly payments that could be too difficult for you to manage.

Check your Loan to Value Ratio

Your personal Loan to Value Ratio (LVR) is obtained by dividing your home loan amount by the property purchase price. A high LVR is more risky as it means that you are only putting in a small percentage of the price yourself.

Usually Lenders Mortgage Insurance is needed for loans with more than 80 percent LVR. This is why 20 percent deposit if often recommended as the threshold amount to save.

Budget, Budget, Budget

Living to a budget is the best way to save up for a deposit. Be realistic while deciding to cut the extras – if you cut out all non-essentials, including leisure activities, you will find it harder to stay on target. So allow yourself some leeway, while at the same time budgetting as well for upfront moving and setting up costs, ongoing bills, as well as an ‘emergency fund’.

Setting up, and staying on, a budget is a good thing to do, even after you buy your house – the first year with the mortgage can also be a difficult time.

Put money into savings

For most people, putting your savings into a special account and setting smaller savings goals are helpful. Moving in with family, carpooling with a friend, or reducing luxuries like eating out, are ways which you might be able to save money.

At Our Mortgage Options we like you to see us as a trusted adviser when it comes to home loans. We will answer your questions, listen to your concerns, and help you to choose the home loan option that is right for you.

We welcome your call on 02 9068 6644 to discuss, without obligation, how we can help you purchase your first home in Western Sydney. So contact us now.

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Alex Sperling - Finance/Mortgage Broker

Alex Sperling - Finance/Mortgage Broker

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