So, your family is expanding but your house isn’t.
When new children come along, they can quickly make you realise how cramped for space you really are. And while the solution is a new family home with a couple of extra bedrooms, finding the money to buy or build can be tough. Here’s a few tips that can help you get your family into your perfect home and give you the space you need.
Look at your budget
When you’re living on less than two full-time wages, finding the money to buy the perfect family home can seem like a pipe dream. But it might be easier than you think. A Budget Planner Calculator can help by putting all your income and expenses in an easy-to-understand format. All you need to do is be as accurate as you can with the information you provide, and the calculator will work it all out for you. It’s also a great chance to discover how making a few sacrifices here and there can make big impact over time.
Work out your borrowing power
One of the great things about home loans today is you can get an idea of how much you might be able to borrow without even talking to a bank or lender. Use a Borrowing Calculator to work out your borrowing power before you even start looking for a mortgage. All you need to do is enter your family’s income and expenses and put in the basic details of a home loan you think may be suitable. Straight away you’ll get an indication of how much a bank or lender may lend you, and you can start your property search. It’s important to remember borrowing power is not a guarantee on how much you may borrow, or even pre-approval, it can just make everything that little bit easier.
Look hard for the right mortgage
Always remember that banks and lenders want your business, so they have developed a big range home loans that have a lot of features. Finding a suitable mortgage that fits your budget can mean looking beyond the interest rate. If you think you might struggle to save the 20% deposit most banks and lenders require, then take a look at the low deposit home loan options on the market. Also, there are a range of Family Pledge home loans that allow you to use the equity of a close family member to help you take your first property steps. Each home loan will also have a range of features such as Offset Accounts, Additional Repayments or Redraw that may save you thousands of dollars in interest repayments over the life of a home loan.
Look for the first-home benefits
If you’re trying hard to get off the rental treadmill and into your first home, you’re in luck. Governments across Australia want to help you. Depending on where you live, there may be a range of first-home buyer grants to help you buy your dream home. And governments also like reducing Stamp Duty for first-home buyers in some areas. Take a look at what the options are in your state and you may be surprised how much you could save. Banks and lenders will also have home loans that are created specifically first-home buyers to help get them started on their property journey.
Look closely at repayments
Each home loan is different when it comes to mortgage repayments, so make sure you’re happy choosing one you know you can afford.
Look through the available home loans and when you have chosen a few options, run them through a Mortgage Repayment Calculator. It will give you all the information you need about all your repayment options.
I hope this post has helped you have an idea on how to get funds for a new home!